Dear Kish,
You will agree that the word "despite" has a negative connotation that Joseph Smith was not apt to use in his figure of speech, especially in that particular context. In fact, nowhere is that word found in the entire Book of Mormon, so why should Dan think to put it there? Dan screwed up. The word had a strong negative connotation in Smith's time, so putting it in that context involving works coupled by grace is really inappropriate, if you ask me.
Webster 1828 Dictionary wrote:DESPITE, noun
1. Extreme malice; violent hatred; malignity; malice irritated or enraged; active malignity; angry hatred.
With all thy despite against the land of Israel. Ezekiel 25:6.
2. Defiance with contempt, or contempt of opposition.
He will rise to fame in despite of his enemies.
3. An act of malice or contempt; as a despite to the Most High
DESPITE, verb transitive To vex; to offend; to tease.
Dan's attempt to substitute with the word "despite" would have been more successful had he employed a word that Joseph Smith used dozens of times in the Book of Mormon in a variety circumstances:
NOTWITHSTAND'ING
As I said above, Dan really screwed up. This is a black mark for him.