You need to go back and read the reponses here again.. You are missing several facts here.
First of all, as far as the "adequacy" of any peep sight. If you can TRULY shoot 1" groups with that rifle at 50 yards with the factory iron sight, -YOU HAVE ALREADY ANSWERED YOUR OWN QUESTION..
I have never heard of anyone who cannot shoot rear aperture sight better than open sights as long as the aperture size is large enough. The peep will be BOTH faster and moe accurate for most shooters. If you can shoot the factory irons that well, the peep will be even better.
Now, about the "travesty" of drilling the reciver for a peep sight..
HOW do you think you will get a side mounted scope on that rifle? With Duct tape? No- you are going to drill 2-4 holes in locations that serve NO other purpose than to put on a side mount. And, they will be bigger holes than for a peep sight. And, if you ever take that ugly looking side mounted scope off someday, the rifle will look like a block of swiss cheeze.
Most lever gun buyers would not mind two holes drilled in the side of a lever gun for a proper peep sight. That is becuase most lever gun buyers usually get around to putting a rear peep on any top ejecting lever gun to begin with. It certainly does not drop the value on a replica like the B92 if done properly. But most of folks WOULD holler like mashed cats if they saw the left side of that reciever with holes for a side mount.
The last point is,unless your gun shoots high right now with the lowest eleveator setting on the rear sight,I simply do not agree with your take on the receiver sights. They CAN be mounted low enough to hug the top of the action pretty closely. The center of the aperture should be able to be place right wehre you need it.
With most loads, I sincerely doubt yuou will need to do anything with the front sight if the reciver sight is mounted by anyone who really knows what they are doing. If you do need a higher front sight blade, here is how to do it. The orional m92 rifles had the same basic base design as the Brownings do, only the front sight blade was fitted into a slot in the base and pinned in.
Any decently talented gunsmtih could replicate the orgional Winchester setup without removing the orgional sight on the barrel. They could the actual blade and then mill a slot in the front base on a mill or simply cut a slot with a Screw slotting file by hand. Either way, you could put a higher front sight on it to the correct size.
And not "put a mustache on the Mona Lisa"...