Azure virtual network location tradeoffs

I was simply curious if there were tradeoffs in choosing a location of a virtual network. For example, if many of the resources and existing v-nets are in the West region and I want to deploy a new v-net, presumably I should also do it the West region. But what would be the drawbacks of deploying it in the West-2, for example?

Seems I can peer my networks the same so not sure if there are capability or functional changes. Are there latency issues?

Your vNet has to be in the same region as the resources in it, so it's more likely that the requirement for where you compute needs to sit will drive where your vNet sits.

If you peer networks in different regions than traffic between the the two regions will have more latency than traffic in the same region, that's just the nature of distance and the speed of light. You will also have egress charges for data that leaves the region.