Does that go away? Should I wash it?
Also, holy crap it's intimidating!
I have a Papaya 4.9 and yep, it is intimidating! I have had it for several weeks now and am not nearly as proficient as I wish I was.
I don't find mine itchy, weird since I am very sensitive. I would try washing it. Also, they are supposed to shrink quite a bit form washing (I think that is line dried as well) so that might make you more comfortable too.
Definitely wash - all wraps improve with a wash when they are brand new ;-)
And it does get much easier - just give yourself some practice and you'll be a pro in no time!