Shouldn't leave permanent scars.

Long term scarring is not likely with herpes, but it may take a while for it to get back to normal skin color. I do advise not picking on the scabs, but then I'm sure your mother told you the same thing about them when you were a youngster.

There is no reason at all why this should affect your sex life. Lots of people have scars for one reason or another and, even if there was one on your penis, so what? I've had genital herpes for over 12 years now and it's just not an issue and, yes, I definitely do have sex. :-)

Once it's healed over, you should be good to go. Remaining discoloration of the skin is not a problem.

It sounds like you've not actually been diagnosed with herpes, though. Why don't you get some testing done. Either a type-specific IgG antibody test like the Focus Labs HerpeSelect, or a type-specific culture or PCR swab the next time you have symptoms.