Yes, they can. There is nothing strange or technically complex about that. And before you ask – no, it’s pretty much unrealistic to protect public web page from being copied.
My process to deal with such goes roughly like this:
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Contact blog owner and point out that your posts are not meant to be copied and that is not allowed under license/terms ( © in Two Step Media © 2010 ) of your blog.
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If not successful report to his hosting. Additional mean and pleasant step is to report to advertisement companies that are used on site. Most of the time scraping is done for profit so hitting profit is exactly what hurts and makes a point.
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Give up or get legal stuff involved.
Since blog in question is hosted by Google and not self-hosted it’s very likely 2 (if not 1) will get it done.