I know what you mean...about the the layers getting thicker and thicker. For my top lip it looked really thick for days and days and I finally took it out to find some improvements maybe if I left it alone longer...
For me if the crusts are split up or broken no new crusts form underneath like yours...I can actually see some improvements and I got it through overuse of excessive chapstick as well JDubbs....
My peels are getting thinner though that is a good sign or atleast I hope so. Last couple of weeks my crusts have been somewhat thick but this week it is like a thin layer of crusting. Maybe after this layer is gone a new smaller one will replace it and my lips get better.