Matt,
After a few emails I was able to get a little more background on it.
EAP-PEAP Public is specifically created to be used in High Capacity Guest mode to provide secure WiFi for guest users. In HCG mode we don’t allow normal PEAP method to be configured that can authenticate against any repository, as it can be used for enterprise class 802.1X.
The EAP-PEAP Public method can’t authenticate with any repository, it will only accept the configured public username/password.