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Content will have to be copied from somewhere and therefore Google will definitely catch up on that and penalize/lower you in the search results sooner or later.

Actually, check out latest Google post on their blog.
 
I don't think autoblogging even falls under SEO category. But if you're talking about content, then yes if you leech copyrighted content, the content owner can file a claim. But if its original content and you are using just automation tools to post the content etc then its fine. Also, would be better if you'd elaborate your question further.
 
I have a autoblog for about one year and its working fine till now, but if you could use an article rotator it would be much safer.
 
There is nothing wrong in autoblogging but it is always better not to give chance to google. If we do anything in a perfect way..it is really good and effective.
 
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