To answer a couple of your questions:
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Wild specimens often grow up to 30 centimeters long (12 inches), but in captivity the will often stay around 15 centimeters (6 inches).
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Wild Peacock eel will eat worms, crustaceans and larvae and keeping them on a similar diet of live food in the aquarium is recommended. Live brine shrimp, blood worms, mosquito larvae and cyclops are all good suggestions.
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I don't know if they work with oscars or not. As a word of warning, though, oscars have a tendency to rearrange decorations to suit themselves... and that includes plants. I would start slow with your plants if you plan to have oscars, and see if they get uprooted before you start dumping a lot of money into greenery.