You hit the nail on the head, here, buddy! Like all software tools which are controversial (see also article spinning) autoblogging software is best when used intellegently. Use autoblogging to drip feed content and add in some of your own content too. That way, you have the best of both worlds...its easier to manage a large number of blogs but still getting original content. When you post someone else's article there is no moral problem, especially if you provide a link back to the original. This is called syndication and those people who do not wish their content to be sydicated should turn off the RSS on their sites.
Great to find someone who realizes the power of software. Software does not have to be seen as "bad". An autoblog is simply using software that can be used unfairly or used fairly. It is just a tool. If you use it to improve the user experience, what is wrong with that ?
One thing which is a wee bit sneaky about autoblogging is that you are benefiting from other peoples' keyword research. By publishing someone else's article which has been crafted using keywords and keyword phrases to rank high, you will benefit from that too. Now imagine that you have original quality posts which are just on your blog and keyword crafted posts from other high SERPS sources, your blog then becomes 'greater than the parts'. It pools quality content from various quality sources in one place. The searcher basically gets all of the best information in one place. If Google and the like are true to their remit of providing the highest concentration of quality information at the top of their search results pages...then your blog should be #1
I like autoblog. with a number of websites that many will be difficult to manage manually, lol, just my opinion.