Information Overload is not a new occurrence
Over saturation of information with RSS feeds, twitter, etc. is not a new occurrence. Lets go back to the pre-Internet days, now lets go back a bit further to the pre-TV days, at that time newspapers and magazines were the primary news sources for the majority of people. This was before Newspapers were printed daily, they were published weekly. Then came a time when new printing technologies made printing faster and more affordable such that Newspapers could be printed daily. Imagine going from getting 1 newspaper a week, then jumping to 7 newspapers a week. How did readers cope with this new deluge of information? Newspaper readers were at first overwhelmed with the flood of information. But they learned how to cope, and the newspaper editors and companies learned how to better organize their newspapers. This may seem hard to believe [sarcasm] but readers of said newspapers did not read every article and sentence. So how did newspaper readers pre-Internet find what articles were of interest to them if they did not read every article?
Difference between Newspapers and today's RSS/Twitter feeds
A key between newspapers and today's RSS Feeds are who the curators and editors are. In the case of newspapers and magazines there was one person or a team of people whose primary job was to edit and/or organize articles in a way that makes sense to the newspapers/magazines readers. However in the case of RSS Feeds and twitter you are the editor/curator of the content you read/follow.
Another difference is that most feed readers present updates to it's users in number form, (ie. 150 unread posts). Could you imagine reading a newspaper with a number constantly hovering over it showing you how many article you hadn't looked at yet? The newspaper/magazine has no such unread counter. This counter drives many of us to strive to read every new post in attempt to reach 0, but this is not a game that can be won easily.
How I organize feeds/Twitter to stay informed but avoid Information Overload
Some people put a limit on how many people they follow on Twitter, not me, what I do is make sure whenever I follow someone new I add them to atleast one Twitter List. In this way I group people I follow on Twitter into categories. I have a general Tech list, Japan list, a Mobile list, a Netcasters list, a private Friends list, and several others. This way if I want to see what my friends are up to now I just view my Friends list, same for Japan news, Netcasters, etc.
I take this same approach with RSS Feeds, I use the NewsBlur Feed Reader (yes their is at least one good alternative to Google Reader that is actually being developed and improved) and put every Feed that I subscribe to in a folder. Each folder is a category, so when I want to read Tech news I read through the Tech folder, Mobile news in the Mobile folder, etc etc. Because of the nature of RSS Feeds I don't worry about reaching "Feed Reader 0". I configure Newsblur to not show me the total number of Unread posts in the page Title (the default preference) and read when it's convenient for me not when the Unread post count increases.
I also try to subscribe to only couple blogs that cover the same industries to avoid reading the same news over and over just rephrased differently. When I find one of the blogs is getting a bit repetitive, I just unsubscribe from it. Think of it this way, would you subscribe to 5 different daily newspapers? Probably not. And if you find that you are subscribed to a newspaper that you aren't reading much? You unsubscribe from it. Treat your Feed Reader the same way, if you're seeing duplicate news items or posts that don't interest you just unsubscribe from that site. You can always re-subscribe later on if you find you miss their opinion or view on the news, but I find that happens pretty rarely.
Going back to Twitter, I also use a few Twitter analysis tools to highlight the news that my friends are most discussing. I use the Tweeted Times to view what stories are most linked to in certain Twitter Lists that follow many people, such as Netcasters, Japan, and MobileIndustry. I also use Percolate and News.me that send me daily E-mails highlighting the Top stories based posts shared by who I follow on Twitter (in the case of Percolate it also can take your Tumblr friend's posts as signal input).
With Feed Readers and Twitter You are the Editor in Chief
In conclusion, in the internet age it's up to each individual person to become their own editor of the news they receive. If you find somebody is posting uninteresting links on Twitter, unfollow them or add them to a separate Twitter List it's nothing personal against them. Same goes for RSS Feeds, when you find your Feed Reader turning into an Echo Chamber of Tech news or you read about that same Apple rumor for the tenth time, it's time to unsubscribe from a few of those feeds and try a new folder organization structure.