If I were going to smoke peppers for cooking, but not dried smoked peppers, I would cut them up first. Maybe quarter them. That way, when you smoke them, you'll get smoke outside and in. Probably only need 1.5-2 oz of wood, as veggies seem to absorb smoke pretty fast. Then, when they cool, immediately vacuum-pack them for the fridge or freezer. The smoke flavor will penetrate and mellow, much like with cheese. Just my 2¢!