Using RSS Aggregator instead of Auto Blogging. Is it effective?

Yes, the question is simple.
Let me tell you why I am asking this.
I have some autoblogs and more than 3 of them got deindexed by Big G. As I thought of what to do next and taking a look at BHW, I definitely know that it will be best to make a new site with unique content but at one of my deindexed site I used an RSS aggregator theme which gets the content from Google News and Yahoo News RSS feeds.
After a week I got this site back to the listings, not as high as the old rankings though.
What do you think, will ti be beneficial or not?

Not sure. I was using WPR to pull in feeds and now I got notice of a copyright violation because I pulled in a article from the La Times via Google News.

It seems to me using any Rss Feed can result in some sort of Copyright Violation.

So I am not sure if I should stop all together.

This site is a news site.

How do you get news into your site that is breaking and not take the chance of this happening?

Although most of the sites even like Drudge Report are just about the same thing. Maybe they have permission.