I have never had good success with the peat pellets. This year I discovered the winter sowing forum and I've jumped in with both feet! So now, as crazy as it sounds, all my seeds and seedlings are outside. I'll have to wait until I have plants in the ground before I can tell if this way really works.

I haven't seen the trays but, the old type peat pellets that form little netted clumps when wetted are great for Nasturtiums, Moon Flower Vines, Purple Hyacinth Bean Vine and Poppies. They all hate transplanting and those things make the transition easy for them. Toilet/paper towel rolls are much cheaper though and I'll bet I collect 4-5 paper towel rolls a month the way my kids go through them!

i usually just plant my seeds in little divided trays, but this year a bunch died after transplanting to bigger containers. i got some of the pellets to use instead, and i'll never go back to the other method :) they're infinitely easier and less messy to use, as well as being less of a shock to the plants when they're moved.

I'm using the peat pellet trays as well and so far everything has sprouted and seems happy.
I've got cilantro, dill, parsley, basil (lemon & sweet), giant zinnias, alyssum, and better boys.

I agree with Marcy72...the transplanting seems like it will do little harm to the seedling since you just take the pellet out of the tray and put it in the ground. Don't forget to "harden off".