Can family of EU Blue Card holder travel freely in the Schengen Area with a German Aufenthaltstitel?

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I thought the right to travel freely in the Schengen Area beyond the visa-free 90/180 rule was granted by the Blue Card program, while a "regular" residence permit in an EU country does not grant this right. (At least that was my understanding, any part of which may be totally wrong!)

You are indeed mistaken. Any residence permit or national visa (type D) issued by a Schengen area country allows its bearer to spend up to 90 days in any 180-day period in other Schengen area countries without a visa. The fact that the residence permit was issued on the basis of a family member's employment doesn't change this.

See for example this question and answer from an official list of frequently asked questions (pdf):

15. I have a valid long stay visa/residence permit for a country that is part of the Schengen area. Do I need another visa to travel to other Schengen states?

No. A long stay visa or a residence permit issued by a Schengen State allows you to travel or stay in other Schengen States, while respecting the maximum duration of a “short stay” (a stay of "90 days in any 180 day period").

Furthermore, if your wife and children are also citizens of the United States (or any other visa-exempt country), they can anyway spend up to 90 days in any 180-day period in other Schengen countries without a visa because of their nationality.

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