I wish I could show you how many tomato seedling I will be composting through sowing too many... 100s and 100s none of them were grown in plugs.
What I do is fill a full sized seed tray with compost. Water the compost then scatter the whole packet of seeds onto the compost. Then lightly cover the seeds with a little sieved compost.
When the seedling are about 2" tall loosen them one at a time.
Just pot them on into 3" pots until they are big enough to plant in their final growing spot. Remove the plant from the 3" pot and prick off the bottom two leaves and plant them almost up to the remaining leaves in their final growing position.
Peppers are a little more difficult to germinate as they need about 65-70 degrees day and night (sart them indoors and keep them there until they sprout .. the same applies for peppers regarding potting on.
My toms are in the ground now ( have 5 varieties) and the peppers will be transplanted tomorrow.