I've only ever seen green peas in snow peas or snap peas, in the frozen food section, or in the bulk/dried foods section. When a recipe asks for x cups of fresh peas, does that mean I have strip them from the pods? Seems rather wasteful, unless I cooked the pods, which just seems odd.
Yes, you would remove the peas from the pods. Chocolate and Zucchini shows how to do it efficiently.
And no, the pods are not normally eaten, although according to The Splendid Table you can.