As I stated earlier, I prefer to let all my peppers turn red, particularly when they are eaten fresh. And although the flavor does change, I don't think it "loses" its flavor per se. It only loses the green chlorophyll taste. But I will say this: some hot peppers must be allowed to change color for the pepper to exhibit its characteristic texture and flavor. Take habaneros for instance, unless they change orange or red they're just not the same. Green ones are still hot and have that habanero smell and taste, but they just don't compare to the flavor and juicy soft texture of ripe one.
But if you are pickling your peppers, you may want to pick them green, especially if you like a bit of a crunch to them. Sometimes ripe peppers can be a bit soft when pickled.
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