If one were to boil down the definition of halal, pork bacon would be at the far end of the line. Thus, there is turkey bacon, made from turkey meat processed to taste like and resemble bacon. So, as long as the slaughtering of the turkey adheres to Islamic law and avoids pork or any other haram ingredients, it is considered halal.
In essence, turkey bacon is about so much more than the dichotomy of haram verses halal. It is symbolic of a smoothing-over of the Muslims into global culture. Some prefer to get the sense of a Western breakfast or a modern burger while treading carefully not to infringe their religious boundaries.
Still, one would like a warning: imitation should not distract one from that which is essential. Islam does stress food that is halal and thayyib-good for the body and soul. So turkey bacon might then be in the category of okay, as long as there is a healthy consciousness that it's not taste but blessing that gives every bite its worth.