I've always found ATM withdrawls best for cash, and the best low-fee CC deal for everything else. Rates on US$ traveler's checks are usually at best equivalent to a credit card + surcharge. I doubt that Chase (or anyone else) gives anything better on foreign currency traveler's checks. The ATM/credit card rate is wholesale (even plus surcharges), whereas traveler's checks (any currency) will be converted at retail rates. I have also yet to be charged a fee for using a foreign ATM other than my bank's normal non-local ATM charges--surcharges are a US phenomenon.

Also, IMHO traveler's checks are simply too illiquid and inconvenient to make them worthwhile, regardless of whatever miles one might be able to earn.