I've often made chili with smoked meats. I've done it with brisket, basically made burnt ends them mixed them with my usual chili recipe in place of the ground beef. Comes out real good.
I've also smoked London broil then cubed it pretty small and put it in the mix.
Never truly did smoke the peppers, but I have often roasted them on the gas grill to where they were blistered before chopping them up for the mix.
Not sure if I'd deviate with an existing recipe for a competition, but certainly you can do it to try new things with friends. A good friend of mine is a trained chef so I often use him as a taste tester. I respect his opinion immensely because he'll honestly tell me if something sucks. You usually don't get that kind of candid feedback from family. At least I don't...