The 'heat' in peppers is a specific reaction between the nerve endings and one or more compounds present in the peppers. So while it may feel like it is burning, it isn't actually, nor is tissue damage occuring. This is not to say that it cannot be painful, just that no actual damage is occuring.
In fact there are commercial pain relieving creams (Capzacin®) that take advantage of the ability of these compounds to literally run nerve cells out of the neurotransmitter required to transmit pain. These creams can be used several times a day without any risk of tissue damage.
There are a couple of errors here:
First, while the capsaicin (the active ingredient that makes peppers "hot") is a reaction between the capsaicin and certain vanilloid receptors. Hot peppers cause a "sensation" of heat, it is NOT a flavor.
Without getting into tremendous detail, the body builds a resistance/tolerance to capsaicin over time and exposure similar to, but not by the same mechanism as heroin. For example if a first time drug user takes a heroin hit of the same dose as a hardened addict, he will probably die, whereas the addict just gets high. The same is true with capsaicin. The way it is used, is to start with a low dose on an area of skin (for arthritis relief) or in small amounts on food and to gradually build up the amount used as you tolerate greater amounts of capsaicin. Next, if you apply large amount of capsaicin ointment to the skin (or colon) the first time you use it, you WILL have tissue damage and a burn and the skin will redden. Whereas, if you build slowly, you can work up to higher doses that will merely feel warm and not cause redness or tissue damage, and this is exactly what the capsaicin ointments tell you to do.
Regarding tissue damage, I can refer to an older post where I caused severe tissue damage to my husband, the important points being the following:
Capsaicin ointments and Ben Gay can cause quite a rush but isn't easily removed or cancelled, and that is the danger in using it. I will say to use them with EXTREME CAUTION and to test it out on very small areas before indulging yourself.
Keep Ben-Gay and Capacin FAR AWAY from and sensitive or mucosal tissues and VERY FAR from your face and eyes.
You might think it has a nice warming sensation, but in larger amounts it is horrible. I rubbed some on my husband's scrotum out of ignorance once about 15 years ago in an S&M scene and the pain got so severe he literally cried and then a few days later, the skin turned dark brown and peeled off. It was a very ugly site and was very sensitive and painful for almost two weeks.
The active ingredients in Ben-Gay are menthol and salicylates of varying concentrations, depending on the version of Ben-Gay you are using.
Active ingredients in Capacin is primarily capsaicin--the compound that makes hot peppers hot. Be forewarned of potentially VERY SEVERE reactions on sensitive tissues.
From speaking with other experienced and knowledgeable DOMMES at NYC S&M clubs, I discovered this is NOT an isolated incident. BE CAREFUL.