Ive tried to make the same chili beer twice now. If you arent looking for heat, I would do as HB_99 says and remove the seeds. Either way I would cut them up.
The last time I did this recipe, I used Anneheim and Serrano. I cant drink them. I use them for cooking.
Use peppers that you like the taste of, and use them sparingly. I like the idea of making a tea, but I think I would add it to secondary or even at bottling.
Good luck, and post your recipe and how it turns out.