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Why would you even play on Peaceful? Half the game's fun is the sense of dread that comes from exploring in the dark.
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I normally have it on peaceful when I'm watching 'net TV in the background and have the sound turned off so therefore can't hear enemies - But normally only when doing mundane tasks such as constructing lava moats and farming lava from the nether.
Otherwise having it on normal or hard makes the game a lot more interesting and fun.
Peaceful really is like cheating, although I will admit that I sometimes exploit the health regeneration that peaceful mode gives you when low on health and stuck at the bottom of a deep cave with no restorative items. Otherwise I die, lose all my stuff that took me hours to farm, and that's frustrating and not fun at all. Then I stick it back on normal/hard again to keep it interesting.
... I still sometimes fall into lava and lose my stuff anyway though. :P