Google has in the past indexed blog content through RSS feeds, however, due to a lot complaints Google decided to go for a complete page rather than just the feed.
We have changed the way we index blog posts to include the full content of the page. We’ve had occasional complaints about the use of the feed content, particularly the problem with partial feeds that you mentioned.
The indexing change has improved the results for a lot of queries, both because we have the full content of the page and because we extract links that are missing from the feeds.
WebProNews has pointed out one problem – at least a problem for some. Google is indexing everything on the page, including blogrolls. In fact some have undertaken a search on their name to find themselves listed several times – why – their name was in the blogroll.
On a side note – if you are going to swap links via the toolbar, at least ask for an appropriate keyword link. As far as using your page rather than the RSS feed, you wont notice much of a change except perhaps in the cache results.