Ok, the clue was in the post further up. The 'read more' link is a javascript postback, but the post's title link is straight html. No issues with Google either way and I have plenty of indexed blog material to prove it. (if anything, I have had more seo trouble with Ajax'd content than this)
The last blog release was a balls-up in several areas and so I did not install it. The team has some great people on board now and the next release has some SEO improvements.
The real reason to choose between the blog and ventrian's module is not in the seo so much as in the organizational heirarchy. The blog places the author at the top of the tree, whilst the News Articles module puts a blank category at the top of the tree, and the remaining categories below that. This is a very important distinction.
There is no advice that anyone can give that will replace the need to test modules in the exact scenario you want to use them. Spend plenty of time doing that.
Rob