Is there a way to make bacon a decent substitute for pancetta in Italian dishes?
It's not the same, but it can certainly work. Guanciale is a great substitute as well if you can find it. 

I just made carbonara last week with bacon. I used this recipe. It came out pretty well. Using water in the initial cook makes the bacon come out a little more chewy. 

Also, I use a zester on my pecorino, and it comes out grate that way.