Last Updated: 07/10/2023
Short Answer: Yes.
Long Answer: There are actually still some use-cases that you would want to use VPC Peering’s over a Transit Gateway. A lot of blogs and articles talk about why Transit Gateway is better than peering’s but none really mention the other way round.
Firstly, VPC Peering’s are free! There is no additional charge on VPC Peering’s vs. around $36 per VPC Transit Gateway Attachment. There is also no charge for intra AZ (AZ ID, not name as this differs across AWS Accounts) charge across VPCs vs. the $0.02/GB Data Processing charge on the Transit Gateway, which you pay regardless of AZ.
Secondly, there is no bandwidth limit on VPC Peering’s vs. the 100Gbps (soft) limit on Transit Gateways. Saying that, I’ve rarely seen a customer need that much bandwidth, and if they do I would question why they’re not in the same VPC using cluster placement groups (assuming it’s EC2 their using), but thats a whole different topic.
Thirdly, there is no ‘next hop’ using VPC Peering’s. From a routing perspective its a software defined/logical connection, with no intermediary network devices.
Don’t forget: VPCs are non-transitive, so you will still have to have a mesh-style Architecture if you want to have full route-ability between the VPCS, which will massive grow with n(n-1)/2 connections. In my opinion, Transit Gateways are the way to go if you can afford it and you have tens or hundresd of VPCs, but you may still use VPC Peerings for those ultra high data transfers between certain VPCs to reduce the cost.