I'd think a better way to handle this is to use CSS classes rather than swapping "display: none;" and "display: block" directly on elements.
So for instance, if you have a class .feedreading_hideit which contains "display: none;" and the inverse in .feedreading_showit ("display: block;"). I realize it accomplishes the same thing, but it's flexible via jQuery with addClass/removeClass like so:
Give #feedreading_blogroll_ the .feedreading_hideit by default, then at the end of feedreading_limit_display() place the following:
Relatively simple solution. Extending this technique further, for myself I added a -more- button (since I'm displaying only 6 bookmarks) as well.