WireGuard can be used to create a virtualised private network, but doesn't do so on its own, or without additional infrastructure. WireGuard tunnels network packages securely, with high throughput, from an arbitrary point A to an arbitrary point B. No more, no less.
Just because it can be used to recreate VPNs traditionally used to remotely dial into a secure network zone doesn't mean it shouldn't be used in far smaller use-cases. WireGuard doesn't constitute anything like a full VPN solution on its own.
It's not different from IPSec, GRE, VXLAN, etc. It's just the new hotness.
We use VXLAN extensively in our network, btw, and IKEv2/IPSec tunnels between sites.