I wasn't aware bacon was all that processed?
I think generally when they refer to "processed meats" it basically means "meats containing sodium nitrate", which bacon does.
I used to buy "uncured" hotdogs, etc., thinking I was avoiding the nitrates, but all "uncured" meat is loaded with celery juice, which in turn has nitrates. In fact you may end up with less nitrates in the meats that are "cured."
All that said, there's evidence for and against nitrates being the devil. Just like they're always flipflopping on eggs and such being good or bad. In the meanwhile, I'll just stick to my usual strategy of moderation.