I found the solution to making the perfect bacon-wrapped Peep. No more under-done bacon and over-melted marshmallow the consistency of shaving cream! Start with pre-cooked bacon that comes in a box, wrap it around your Peep, secure with a toothpick, and then toast. Et viola!
Two more skeptics who tried the combination at first just to be polite are now firmly in the "please pass me another bunny with bacon" camp.