I confess that I use tube-packed ground beef, and that I like the product.
To begin with, the fat content is not a drawback for me; it's actually an advantage. With ground beef, as in any meat, fat is where the flavour is. Not only is most meat trimmed of nearly all fat these days, meat is actually being bred leaner, to the detriment of flavour. The biggest example is pork, which is now bred so lean that most people end up with tough, dry pork chops after cooking. Premium brands of meat, like Niman Ranch, are not bred so lean, and retain the classic "marbling" of old.
What I use tube-packed beef for is soups, stews, and chilli. For that usage, the fat content is okay, because the ground beef is browned before being added to the recipe, and the excess fat discarded. When I'm browning, I do two things to maximise flavour and minimise fat: first, I brown in a heavy cast-iron skillet, and I REALLY brown the meat. Most people just cook to a greyish colour, and that does very little to develop flavour in the meat. It also doesn't render out as much fat as possible. Once I'm done browning, I then drain the beef by putting it into a wire-mesh colander that is set over a Pyrex bowl; once the beef drains on its own, I then press down on it with the back of a wooden spoon to get everything out of it that I can.
Now, that sounds like a lot of fat comes out, and that is true- you lose about 1/4 to 1/3 of the weight of that pound of ground beef. But my experience with leaner beef is that browning it does not develop so much flavour (unless you use some oil in the skillet, which rather defeats the purpose of really lean beef, no?) and you still lose about the same amount of the weight of the beef, to water loss- a higher water content seems to be the trade-off for lower fat. You also don't get as intense a brown.
So far as safety is concerned, I cook ground beef until it is well-done, unless I'm doing hamburgers, in which case I buy the beef from a trusted butcher here, not at the grocery store at all. While large packing houses have their problems, it's also my personal feeling that grocery stores have a few of their own, not the least of which is their poorly paid, poorly trained help. What that means is that I trust neither source completely, and I have eliminated rare and uncooked meats from my menus unless I'm feeling flush enough to spring for meat from the butcher. For the same reason, I no longer make mayonnaise at home; the egg producers have their problems too.
So, this is a product I use, but with care.