A few notes on this:
Google Alerts piped to Blogger eventually get shut down. Usually the Google Alerts just disappears. Once I got a notice that Blogger thought one of my blogs was a "spam blog" and so I shut it down myself. Apparently content that is only built through Google Alerts can be considered a "spam blog" but one which has human-edited content originally isn't.
Google Alerts piped through an imaginary friend on Friendfeed to Twitter is a success - as well as mixing it in with other news RSS feeds. I've got an imaginary "http://twitter.com/joethunk" which was developed simply to give me news feeds and an alert which is all the "how to's, learn to's, and ways to" which show up on the web. This has over 466 followers as of today. I imagine if I put a babe as an icon, it would get even more. Just the way life works. But its right now the content which is valuable to people.
Using Alerts to pipe to Friendfeed and then using that RSS back to a blog (probably a WordPress plugin) would be the next approach. A direct Google Alerts to Blogger using a mail-to approach leaves the header in, so is easily worked out. When those alerts go through Friendfeed, that header disappears. Posting it on a Wordpress blog would be a workable auto-blog. While Google could lower it's rankings, it couldn't stop it as it does with Blogger.
Now, if you could do that with a video feed, you'd be really popular, depending on how you themed it...
All for now, a couple more posts to do elsewhere.
Oh - remote blogs do work, you just have to watch your subdomain names and not directly "take over" trademarks. Research shows that adding "blows" or "sucks" after a tradename is legal.