[ktorn]

It's just a proxy for the .bit domain since most users cannot access .bit sites directly (not yet anyway).

For example, if you cannot access http://explorer.bit then you can just add .pe to the URL and access http://explorer.bit.pe

[mrfusion]

So someone in the namecoin project registered bit.pe?

And they just have a server running that passes the requests through?

[ktorn]

Not sure who did it, but yes.