I looked at the sitemap, and they are including the http://www.seomoz.org/blog/the-story-of-seomoz but not the canonical page - http://www.masternewmedia.org/entrepreneurship-the-full-story-of-seomoz-told-by-rand-fishkin/
So based on this example, the page on SEOMoz is still included in the sitemap, regardless if it has a canonical or not.
This seems to make sense, since canonical links are used only as a hint and not an absolute directive.
I also noticed that Google is choosing to index and rank both pages, on Page 1.
SEOMoz is ranking higher on my browser for "the full story of seomoz". A few things going on here.
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Why is google choosing to rank SEOMoz higher than Mastermedia.org for this page? There's a canonical setup, but google is choosing not to follow it. (again its a hint not an absolute) this doesn't always work.
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I would think Google would be able to filter out the duplicate content easy. In this example, they are clearly not. SEOMoz is ranking #4 and Masternewmedia.org is ranking #5 for query "the full story of seomoz"