I haven't peeled/picked at the crusts that form on my lips for a year now. When they fall out, they fall out but I have never forcefully removed it. From this, I don't think that crusts are the same as a scab. I believe the crust is a sign that new skin cells are dying faster than they're being exfoliated naturally and therefore they pile up into a nasty crust. I have decided to try various moisturizers and see if something other than vaseline is causing the crusting. Before switching to vaseline, I used vitamin e ointment and there was very little crusting but my lip didn't seem to know how to heal. So, I'm just experimenting around at the moment.