What should I do with the kiwi peel?
I've got no problem with its taste and feel
and eat them whole when I'm by myself.
Is it in any way bad for my health?
It is perfectly safe to eat the peel in and of itself. You will need to make sure that you wash it properly, as it may be dirty. But beyond that, it's simply a matter of taste. A lot of people don't like the flavor / texture of the peel and so remove it.
From a site devoted to kiwis:
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In New Zealand the export Kiwifruit brand is called Zespri. The have fully organic and close to organic orchards. Most of the spraying happens early in the growing cycle, so by the time you buy it it has been rain washed many times. I have family friends whom have export large Kiwifruit orchards and it is a very organic process once the fruit has formed
The green Kiwifruit is very fuzzy and not nice to eat, the gold Kiwifruit is designed to be eaten skin and all. Kiwi Grapes (bunches of baby Kiwifruit) are also designed to be eaten skin and all
Kiwifruit in New Zealand is considered a scoop fruit though (same as tamarillos, fejoas etc), and you don't see many locals eating the skin
The good part of the skin (Exocarp) is not just the dry outer layer, it is the thin living layer immediately behind that. You'll eat that by scooping the fruit out, not so much by cutting it out
For serving speed we normally cut of the ends, halve, and then place half cut down and slice off the skin working around fruit. Then slice into small discs and serve
During picking season the huge surpluses are feed to the beef cows skin and all :-)
I have been thoroughly washing and eating kiwifruit for over 20 years and find the skins vary in texture and flavour if both are good I eat them