While it does tend to have a little heat...it is usually enjoyed by all.
The chilli powder is well dispersed amoung the 15 or so quarts, and the jalapenos are being cooked and boiled in the pot for about 4 hours removes more half of their heat, but none of their awsome flavior.
Other things that you can do if your wife is paticularly sensitive to heat...use mild salsa, and trim out the middle of the jalapenos (the area with the seeds) so that you are just using jalapeno 'rings'...also there's chili powder, and there's HOT chili powder...either will get the flavor you are looking for...you just have to decide on a the heat range that everybody can enjoy.
PS - the brown suger is there to kill the acidic taste that some canned tomatoes have I usually use about 2 Tbsp, but as usual, YMMV
Like many here have implied, great chili is an art, not a science...the quality of you ingredients shows in the quality of you chili...some peppers are hotter, some onions are stronger...you may have to fly by the seat of your pants a bit, but if you get the stuff on my list, you'll have everything that you need...oh and you will like it the day it is made, but you won't believe how much better blended the flaviors are when reheated the next day. - Josh M.