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Haha, right!? People say it's not that bad if you use lean meat, but I just don't know. I'm sure you could also smoke the beef separate like a meatloaf, then just take the meat with the fat drained off and crumble that up to put in the chili.

Yeah, that method would transfer just as much flavor. I do something similar with collard greens. I use a smoked turkey leg instead of fatty salt pork. None of the flavor is sacrificed and there's more edible protein in the greens.