Smoked check hobo-peeling/discoloring? Should I cut off the strap? Advice please!

[nainap]

This bag is 5 years old and sparingly used. Lately I have been noticing peeling/discoloration, not sure what it is. I am careful with my bags and don’t mistreat them. Wondering what to do, please advice! Cosidering cutting off the strap and using the bag as a crossbody with a detachable strap (this strap is not the most comfortable and peeling is most noticeable on the strap)

Here are a few pics!

 

[katieny]

I usually unstitch handles with a seam ripper rather than cut if possible. I’ve switched out handles a few times so it can be worn crossbody. I’d touch up the leather with dye.