I couldn't agree more on the first half of what you wrote. I have not found a single chili mix that came even remotely close to freshly ground powder, including freshly toasted spices. The little extra effort to do this is a huge payoff for me, not to mention significantly more economical than buying a store bought mix.
To your question, though, what is the RIGHT way to make chili, exactly? The chili I make is a very traditional Texas style chili, that uses ground powder from dried, not fresh chilies. How is that not chili? I would also point out that Texas chili's close Mexican cousin, Chili Colorado, is also made from dried chilies that have been rehydrated.
My point is that the very definition of "Chili" is so broad that it encompasses a wide variety of regional concoctions that I personally would not define as chili in the traditional sense, nor would you. While we might agree that some of these concoctions to us are not unlike boiling ribs, vs slow smoking them, to others, they represent the pinnacle of "chili", and nothing will probably ever change that.
My preference these days is to offer alternatives to entrenched approaches that are an invitation to try and experience something different. Education and encouragement can be helpful to those who may not be aware of those alternatives.
