I take it that the recipe means one pound of dry beans that has been soaked and cooked, which yields more than a pound of cooked beans. If that's true, I'd say that this recipe sounds about right. Two pounds of dried beans (two bags if you're buying packaged, not bulk) is a heck of a lot of beans!

Chili powder isn't cayenne- the former is a blend of (usually) several different types of chiles, plus spices and salt, while the former is simply ground cayenne pepper. If you're serious about chili, why not think of making your own? Get a nice mix of three or four different kinds of dried chiles (a good mix is Anaheim (mild), Ancho (hotter, but nice flavor too), Chipotle (for a nice smokiness), and Guajillo (adds a nice dark complexity). Break 'em up, put 'em in a coffee grinder (you should dedicate it as a spice grinder- you really don't want all this in your coffee!), and you'll have a nice custom made chili powder the likes of which you can't buy anywhere except in fancy Mexican shops (which you can easily find in NY, but hey, it's fun to make your own...). Check out this web site to get familiar with the many chiles out there.

BTW, I'd add cumin to that recipe.

Have fun!