What I don't understand, and please don't flame me, is how do these kids function in the world at large. Peanuts exist. Lots of restaurants at Disney, for example, have PB+J on the kids menu. Heck, we go to Food and Wine every year where there is a booth handing out little packs of peanuts. That means thousands of people walking around the parks munching on peanuts as they go.
Having a peanut-free classroom is one thing. A nut-free table in the cafeteria is also reasonable. But what about other kids the allergic child comes in contact with? What about his scout troop or her dance class or his football team or her soccer team? They may be made up of kids from multiple schools. What about family gatherings? It just isn't possible to avoid any and all possible exposures.
I think the request that families avoid consuming peanut products in their own homes is over the top. A suggestion to have kids wash up and brush their teeth before coming to school isn't unreasonable, but expecting parents to ban peanuts at home is ridiculous.