I also think the government should stay out of people's lives.

I see peanut allergies as a different issue though - in my time as a paramedic I saw some really sick kids that were accidentally exposed to peanuts or peanut oil. I don't think my kids' right to eat PB&J at school trumps another kid's right to not have an anaphylactic reaction. It doesn't take much exposure to cause a reaction, and where kids are concerned it's too easy for that exposure to occur.