I didn't see pellets, just the small hardwood chips you are supposed to use with foil or smoke boxes in grills. I have a couple of bags of those but I always thought they were useless because when I grill, most foods are on the grill less than 10 minutes and they get hot enough to seal up and not accept smoke pretty fast. ...
I'm not familiar with the chips you're talking about, but I am very familiar with the hardwood pellets. They are compressed, extruded pellets that look identical to pellet stove pellets.
For about 2 years, I was the on-line sales distributor for a brand of pellets out of Oregon. If I'd been better at marketing, and had more working capital, I'd still be doing it. I demonstrated these pellets at fairs and trade shows.
I've used the "sawdust" sold in small bags, wood chips, and even make my own smoking wood from apple and cherry. But I'm sold on the superior performance of the hardwood pellets.
Just to give you a comparison, the wood shavings sold for Big and Little Chief smokers will last about 20 minutes in their standard wood tray. A full tray of pellets will last close to 3 hours.
There's a certain time in the cooking process you want to add smoke. Too early and it can taint the meat. Too late, and the crust formed on the meat prevents the penetration of the smoke. And as you found out, it's not uncommon to over-smoke something. Also matching the type of wood to the type of meat can make a BIG difference!
There is a very popular brand of smoking pellet on the market today that dominates. Unfortunately, they are sold as "maple", "apple", "hickory" hardwood pellets. They are not pure woods of those types (some softwoods such as fir, hemlock, cottonwood, etc. are used for filler) and they are actually flavored artificially. The pellets I sold were the actual wood they claimed to be. These pellets were so superior for smoking I actually got M&S Meats in Montana to switch to them after 30 years of using 'sawdust'.
I bear no ill will toward the company, even though we had to part ways. I still think their product is the best in the industry. They used to be available at Wal-Mart, and Home Depot. I'm not sure how far they distribute now, but I'm sure mail order is still available.
http://www.wowpellets.com/lil-devils-bbq-pelletsFWIW....