"Update 2: It takes around 10 minutes for a scraper site to take my content and position itself on #1 in SERPs :( "
I feel your pain! Its so unfair.. I have the same problem but with multiple sites and i don't distribute RSS. Our content had been gradually stolen for years and our material is torn apart across many blogs, reputable sites and spam places... The thing that worries me is Facebook groups, a lot of Indian names post our articles to those pages.. If i report Facebook to Google i don't know what to expect... Some of our content is 5-6 years old and it had been replicated across the web since we published it.
Oh, and we are down 90% in Google refferals. Coping with it bit by bit with Bing and Yahoo.