Why is kiwi fuzzy?
Good question! It would be interesting to hear a horticulturist's answer, but from a nutrition standpoint, the fuzzy skin is edible and full of fiber.
The same reason peaches have fuzz. It makes it less attractive for bugs that land on them; the little hairs annoy some bugs, and keeps the fruit from drying out by slowing down air movement over the surface of the fruit holding in moisture. Also, the morning dew collects on the hair and helps hydrate the fruit.
Spent a lot of time in peach orchards in Idaho, and did not connect peaches with Kiwi by taste or scent. This is an interesting question. Peach fuzz brings its own kind of itch - don't itch with kiwi fuzz. Love Sam1148 answer and can't seem to connect kiwi and peaches. Help!
I'm just extrapolating from 'fuzz' on fruit. Not taste. They're both fuzzy fruits, in hot humid environments. Some bugs really don't like 'fuzz' it irritates their bodies and lifts them off the body of the fruit preventing them from laying eggs. A fruit fly would just scuttle about the surface of the fruit on the fuzz, finding no place to lay eggs.
Seriously, I'm just guessing the Kiwi developed the same type of defense as peaches did. Holding in moisture, protection against bugs, and collecting dew.