I love and use Kontent Machine also, but the fact that the content is indexed by google means absolutely nothing. Google will index just about anything, if you put it on the right property..... even completely duplicate content, which is not supposed to happen according to them but you see the same posts and articles, and hell even threads ripped off of BHW onto autobot forums that get indexed all the same.
The issue isn't indexing, the issue is credibility and Panda based content evaluation. Kontent Machine and the like are fantastic for producing material for you to insert your links in backlinking operations. Wiki's, bookmark descriptions, web 2.0's, etc. But try sticking that on your money site and ranking... there will be some exceptions, but by and large this is exactly where Panda based content evaluation algorithms will detect spun auto generated gibbirish, and sure it will be indexed..... it just won't rank, that's the problem here.
The reason this is not such an issue with using it to backlink, is that most of those pages are not subject to such content evaluation. First they live on already established site, you are just creating new pages, and second, you really don't give a shit about those pages ranking, because they are just there to provide you with a backlink.... but you definitely care about your money site ranking. Right
Something to consider.... but yea, Kontent Machine is freaking awesome, my #1 go to in backlinking operations.