Norge: If you ride in silt, sand, mud or water you'll want that grip. Rubber can be slippery. You do NOT want your feet to slip off the pegs when trying to leverage the bike.
Most boot's soles can withstand the points on the pegs, however you could always dull the points with a file, dremel (etc).
I have not seen any aftermarket or improvised rubber pegs on any of the posts in this, or other forums for the WR. KTM does make some "Rally" pegs. You'd have to determine if they are interchangeable/adaptable to the WR.
I'll go take a look at the (KTM/Yam) scoots in the garage and get back to ya.