H.W.
Not eating the pit is the proper way. I have never heard of olive etiquette.When we have parties, people eat the olives and I just have a cup on the table with a little label 'Olive pits' for those who are just standing around and didn't get a plate. (just so someone doesn't think it's some weird nut or food offering). I've never heard anyone comment on anyone else's olive eating style, or lack thereof. I mean, don't we all have better things to do?
File this one under "life's too short".