Well, as the peat dies it'll release carbon, but wouldn't new peat be growing where it's more habitable due to the shifting climate?

Peat dies and regrows all the time, I don't necessarily see how this is a massive problem unless the peat dies so fast that it's not able to grow elsewhere, like in the case of a fire, but if what we're talking about it a semi-gradual shift to drier climates, I don't see why the peat wouldn't grow elsewhere with the shifting climate.

Is this maybe why it's considered low on the list of climate tipping points?