I had wondered the same thing, but none of the females are holding, and none have been holding for quite some time. I've never had much breeding activity in this tank and no fry that made it past a day. (there are petricola in there, too)
Holly,
My maylandi fry, which are very similar to yours, are extremely small when first free-swimming. Probably 1/2-2/3 the TL of other peacocks and about 1/3 the mass of the others. Even in a tumbler then breeder net, mortality rates are much higher than any other Malawi cichlid I've bred. They start out small and grow slowly. If you miss a daily feeding any time in the first 4 weeks, you lose 25% of them.
I successfully bred a few batches, but have slowed down. After the frustration of losing 3-4 batches for no good reason, I've gotten to the point that I don't even bother pulling females anymore. If there was more interest, I'd give it a shot, but the last batch I had sat around until the little males were practically full color and I ended up giving them to my sister.
With other peacocks, you have a few stray fry make it out of a hundred. Predation aside, I don't think that they can get enough food to survive in the breeder tank.
Dang - reread this and I sound like a pooper.... Sorry it's the truth. What I mean by it is again, you're not really doing anything wrong with these guys - they're just a pain to breed - by Malawi standards at least.