I had to fix some peeled wallboard for a customer. I skimmed it with latex spackle, then sanded it slightly. Two coats of paint, it looks fine.
I have gone completely away from oil-based paints and am thinking about doing the same for all finishes. In some areas it's illegal to use them anyway because of the volatiles. My take is that is that it's easier to clean up after water based paint, cheaper and safer (fire danger) since there are no cans of thinner, acetone, or alcohol hanging about. I still use oil-based polyurethane but with a disposable foam brush.