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I agree with Walrus - I provide all of my feeds in morphed and non-morphed format because different affiliates have different needs.
On my own blogs I do one of four things - depending on how I want the blog to perform and/or how much time I have to invest in the project:
1. 100% handwritten posts with unique images for each post.
2. A mix of hand written posts and posts for feeds where I edit the majority of the text on the incoming feed before I post it to my blog.
3. A 100% feed blog where I edit some of the text on most of the posts to help keyword targeting.
4. A 100% feed blog that I setup and forget.
So far - options 1 and 2 are reaping about the same results so my guess (based on a very small sample) is that re-writing a post is as effective (or at least nearly as effective) as writing one.
On the same note - if we were truly worried about duplicate content on our blogs, should we disable the rss feeds on out blogs?
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