Which part sounds insane?
Living with a deadly allergy for the rest of one's life is no fun at all. A large part of social life is eating together in various locations where the allergen may not be so strictly controlled. Either one faces an easy death weekly or one opts out of many social activities. It is awful, and not wanting that for one's child seems natural to me, not insane.
I deliberately expose my child to a lot of things I want them to have in their life: climbing, swimming, the game of go, Unix command-lines, Newton's laws, musical instruments, etc. Doesn't seem odd to add peanuts to the list. (Well, for us it is logistically inconvenient because another member of the household has a deadly allergy, but if it weren't for that it would be sensiblre.) Not insane either.
Is it the idea of exposure leading to lower prevalence that sounds insane? That's been relatively strongly established in randomised trials. Not insane.