He's talking about the paint/sticker/whatever with the letter itself, not the whole key. The paint just peels off.
That's right - unlike the PB, the letter isn't covered by a substantial layer of resin - maybe they used the same stuff as on the iPod Nano screen 😀
Looks like we need some new keys and a skin. No it isn't under warranty, sadly.
My dear old pb145b died a death many years ago and would have cost more to fix than it was worth, so it shuffled off to the great LandFill in the sky, from whence it will pollute the planet for the next 10,000 years.