I've been known to eat them raw, but generally just to show off. I find them too hot really, especially raw with an off-taste that I just don't care for. I like a pepper with a bit less heat and more flavor to my liking.
When my wife and I were out in California one time we went to an outdoor marketplace, and one booth was selling various habanero products. Well, there was a crowd around the place and the hawker was daring anyone to eat a whole habanero. Being the macho sort

I volunteered, and in front of the crowd chowed down on a whole pepper. I kept a straight face and said something like 'good'. The proprietor of the booth offered me chocolate or crackers to cool the burn...nope...I don't need anything, I'm fine. People were impressed and amazed that the whole habanero had seemingly no effect on me. After we walked away and not facing the booth....50 feet or so...I grunted to my wife that I thought I was gonna die
Then here was the time 2 years ago that my buddy Pat fed a hunk of raw habanero to Bully's bosses wife! Bully said that he didn't have a party last year, but I'm not so sure that Pat and I didn't just get un-invited to last years party. Mr. and Mrs. Bully sure can be the sensitive types sometimes