RE: Is peanut butter really that bad?
Peanut and tree nut allergies can be very life threatening. I went to college with a girl who ended up in the ER a couple time when I knew her from being exposed to peanuts unknowingly.
That being said, if your DD didn't react, its probably not a problem. Personally, we are avoiding them until age 3. There is no hassle on my part to avoid them, so I just am. We use soynut butter instead of peanut butter and she likes it just fine.
HTH,
Beth, mom to older DD (8/01) and younger DD (10/06) and always missing Leah (4/22 - 5/1/05)