For me, the thing with Peeps is that it's not just marshmallow, it is the most stale, vile, ancient marshmallow they could find right out of the package, every time.
Not sure where people are getting their Peeps from, but for the ones I've eaten right out of the package, they have almost always been fresh, soft, and fluffy like you would want marshmallows to be. If they were always stale, I could definitely understand people not liking them, but that is not my experience.
Tangent: They should include leftover Easter candy as mystery ingredients on Chopped. (and not for the dessert course)
Tangent somewhat related to previous tangent: Arje, are you watching Chopped All Stars? If you plan to and haven't seen this week's yet, I will reserve comments so as not to spoil anything, other than to say there is one Iron Chef in particular that I cannot stand who was competing, and thankfully did not win last night's round.