I did have discoloration from the peeling. It was as if the spots that peeled were darker pink and had a different texture. They returned to normal once the peeling stopped. I can't say exactly how long it took. I was just so happy to not have them peeling off...
T was using a lip exfoliant from Aquafina (usually with the chap-stick products) if my lips had that dry, tight "thinking about peeling" quality. Follow that with a moisturizer (I've used Neutrogena Norweigian formula hand cream, yep hand cream. It says you can use it on your lips and it's affordable) Let the moisturizer absorb, then seal it in with a lip balm. I think I tried every one on the market and I don't think it matters what you use. Vaseline lip care worked as well as anything. I think the petroleum based products are fine; you are trying to form a barrier to seal in the moisturizer.
I think there's also a bonus in that hand cream doesn't taste good. If you tend to lick your lips w/o thinking, it discourages that behavior.