You can find a lot of info on VPC peering here:
https://docs.aws.amazon.com/de_de/vpc/latest/peering/what-is-vpc-peering.html
It is, like you already said - a (network) connection of two VPCs.
A VPC Endpoint gives you some more options - you could say it is build on top of the VPC peering idea.
Here is a short articel about it:
https://catalog.workshops.aws/networking/en-US/intermediate/5-vpc-endpoint-services/10-vpc-endpoint-services-overview
It also menntions some use cases, like
Application in a VPC that has no VPN or TGW access to other VPCS.
Application in a VPC which has overlapping IP addresses with the VPC you want to share it with
Sharing an application with external consumers in other AWS accounts (even via MarketPlace)
Limit the firewall rules for access to an on premise application by using Privatelink as a single point of access for all VPCs in a region