I enjoy stuffed bell peppers, but while green peppers are substantially cheaper than red or yellow, they're also more bitter. Reading on the web, it looks like peeling the pepper will reduce the bitterness. Can I use this technique for this application, or will that also destroy the integrity of the pepper, making it unsuitable for stuffing?
Absolutely. Look to chiles en nogada, or chiles relleno, for a common example of something similar. Poblanos are admittedly a much firmer and more flavorful pepper, but you can definitely stuff bell peppers with the same process.
By charring the peppers first - either directly on a flame (e.g. on a gas stove or grill) or under a broiler, you can quickly blacken the skin, making it easy to remove. Doing this quickly enough can help avoid making the flesh of the pepper too soft and fragile.
You can then (carefully) stuff the pepper with the filling of your choice, and finish in the oven. If you're really good, you can get it all in through the top where you remove the stem, but it's much easier to split it down the side in just one place, and carefully tuck it back together after stuffing. I've often seen stuffed bell peppers sitting upright, with the top removed; if you've roasted them first you'll probably have better luck with them whole, lying on their sides.
As you mentioned already, peeling of the peppers most probably will cause problem while stuffing and cooking as they will be very soft and they may get destroyed (stuff may spread out of the peppers during both procedures).
The link below about stuffed green bell peppers may be helpful; http://almostturkish.blogspot.com/2007/07/vegetarian-stuffed-peppers-zeytinyal.html