Yeah, Johnny was joking so don't even consider using the Nair. It would cause chemical burn and with such sensitive skin could cause scarring.
As for the hair, see a dermatologist about options. Wax, shaving, laser, etc.
As for skin quality, diet, exercise, Omega 3 ingestion, multi-vit/mineral would do the best. How much it would effect the skin on the penis, I don't know. You could also try using Gamma Linoleic Acid oil externally. It can be found in Borage or Primrose Oil.
As for the warts, what method are you using that causes scarring? Have you ever looked at the products at Herpes.com. Yes, warts is different from herpes, but they have reviews of wart products as well. Chat rooms, etc. Warts No More is one of them.