Alex, I like my peel to be smooth, so I would sand it. At the very least, you should knock off any loose fibers - it wouldn't kill you to eat them, but I don't think it would add to the presentation to have slivers of wood in the crust. If you are sanding, I would sand to 120 or 150. I am in the minority, but I put mineral oil on mine - I think it helps keep the wood from drying out too much, but it could be my imagination.