Avtar, You made some strong points about the negativity of being a "content factory". It is never good to churn out content just for content's sake.
However, the process you described of finding blogs for a niche company is actually commendable - NOT the opposite.
The way to be successful, however, with these topics turned into blogs:
-Have a native English writer who is also a talented copywriter writing those posts. Not offshoring or farming it to some barely-English-legible third world writer. You would think this goes without saying, but sadly people are still thinking this content can work - and finding out daily that their rankings won't improve.
-Vary up the content lengths, tips, and LINKS inside the articles. Don't be repetitive, always have a fresh thought. You'll need a real human - and a creative one - to write each one.
The process you described is workable, and a good one. Let's find your niche company, audience, and then write targeted blogs for both - GREAT stuff. You can rank on Google doing this consistently with blogs. The problem is, you talk about content like it is a shaky foundation. QUITE the opposite. Millions, billions of pages make up the web. Yes, what happens with there is 2.5876 billion more? You need a triple blog publishing plan to compete. The need for more content will simply propel the need for more content. Check out the Content Beast infographic. Along with that, establishing yourself as an authority voice with well researched, niche content for your audience and topics, is essential to getting noticed.
As we recently blogged about, there are even more ideas you can utilize for not spinning out old content.