Trust me, fondant is for looks, not taste! You CAN flavor it, but it would be like eating Play-doh, which is why fondant is so much fun to work with. Most cakes covered in fondant have to be very dense cakes (like pound cake or carrot cake) because fondant is very heavy. The up side is that a fondant covered cake doesn’t need to stay refrigerated (heck, it’s practically hermetically sealed in that stuff!) and when you’ve got a backlog of fifty-some-odd cakes in a week, you are grateful to not have to worry about refrigerator space for them (not that I speak from experience–I work as a cake decorator at Wal*Mart, NOTHING like what Duff makes, but I wouldn’t mind a one-month internship at Charm City Cakes!)
And yes, it’s perfectly acceptable to peel the fondant off the cake before you eat your slice!