With the gravity, IBU, peat, chocolate, and roasted barley in there, I'd call this more of a Scottish 80 Shilling, but maybe that's splitting hairs....
2oz of peat is an ok amount to use. it has a very strong flavor and I'd try to stay under 4oz.
I don't think 3 oz of roasted barley will taste bad.
The "crystal 200"... I don't know if you have a different scale for ranking the color in Ireland than we do here in the states. I thought I heard someone mention that the "Lovibond" rating was a US-only thing, but I can't be certain about that.
200Lovibond (if that's what it is) will be EXTREMELY dark. With the roasted barley and chocolate malts in that beer, I think it might come out dark enough that it won't really look "red".
61% DME Light - 4 lb - Could/Should I use anything better for this beer?
3% Roasted Barley - 3 oz - I'm worried this amount will taste bad
2% Peat Smoked Barley - 2 oz - Is this balanced or mild, too much?
2% Chocolate Malt - 2 oz - UK -
2% Crystal malt 200 - 2 oz - is 200 the same as 20L or is it 200L?
Did you leave something out of the ingredients list? Those percentages do not add up to 100%, so I can't really comment much on the steeping. Are there other grains involved here that you forgot to list?