I don't comdemn the urge to take flies outside- I do that for spiders and mostly leave other bugs alone. I take issue with PETA's way of getting their message across- it is ineffective, alienating and ultimately, ridiculous.
I also leave most bugs alone in my house, or try to bring them outside. If it's causing destruction in my house, I would have to take action, but for the most part they are just living out there short lives so i put up with them. i'm not a big fan of peta though, they seem extreme.