Yes. That's the main reason for the feature, otherwise everybody could just use syndicated accounts of all the people they read.

The goal (and what we should be able to achieve) is, everything you see on your friends page on LJ/IJ/etc will show up on your reading page on Dreamwidth. Protected posts, public posts, etc.

Caveat: only people/communities. We won't copy syndicated posts, those can just be syndicated on Dreamwidth which will be easier on us.