Aileen, that is so funny because my mom did/said the same thing. She would either throw it out once it solidified in the can or she would slice it thin and give it to our neighbors' dogs on top of their dry food when she dogsat. They loved the stuff. Those dogs lived extraordinarily long and healthy lives, but I don't know if it was because of or despite treats like that.
That said, I know plenty of people who cook with it. If you want the same flavor without the fat, use smoked spanish paprika. It oddly smells and tastes just like bacon.