Hey, Meat Hunter...
Those ABTs look fine to me, maybe a little extra fat is still in the bacon, judging by the pics...seems to be a long smoke for that small of pieces, so I would say it's too low on temp, especially with your mention of peppers not getting very tender. You may want to look around and see who else has a chief and PM them to see if they've done ABTs on theirs, and what the results were.
I don't know how high your temps can get in the Big Chief...my understanding is that they are well suited for fish and jerky because of lower chamber temps. If you can get it up to about 250-275 your bacon will render down more and crisp up really well. If you have a kettle grill, you could try smoking them on it with offset rows of coals, just to get higher temp for the bacon fat.
Eric