I used peat pots with happy frog soil too. I found that the pots were really hard to keep from drying out. I ended up repotting almost all of mine into bigger plastics pots. Since most of their roots didn't even get out of the bottom, repotting wasn't a problem. Now, I have a dozen Jalapenos that had massive roots coming out, so I repotted them into 1 gallon pots, peat pots and all. It seems like the outside of the pots dry up real fast, and roots won't go out as well. I've bought vegetables in peat pots before and planted them straight into the ground without any problems. Next year I will only be using plastic pots and peat pellets to start(maybe). Now what to do with 50 some peat pots that I wont be using....
I guess I didn't really answer your question. I had root-binding problems with the peat pots this winter with my starts. If I was to plant them in the ground, I would try and cut away the bottom, but only if you can do that without disturbing the roots. Once I got most of mine out of the peat pots and into plastic, they took off. They also didn't require as much watering, and had more room for root growth. If they're rooting like crazy, I wouldn't worry about it.