Well, Length() takes a character argument (CHAR, VARCHAR2, NCHAR, NVARCHAR2, CLOB, or NCLOB) whereas VSize() takes just about any data type, so if you pass Length() a noncharacter data type there has to be an implicit conversion.
Length is also sensitive to to character sets.
drop table daa_test;
create table daa_test as select sysdate dt from dual;
alter session set nls_date_format = 'YYYY-MM-DD';
select vsize(dt) from daa_test;
select length(dt) from daa_test;
alter session set nls_date_format = 'YYYY-MM-DD HH24:mi:ss';
select vsize(dt) from daa_test;
select length(dt) from daa_test;
... giving ...
drop table daa_test succeeded.
create table succeeded.
alter session set succeeded.
VSIZE(DT)
----------------------
7
1 rows selected
LENGTH(DT)
----------------------
10
1 rows selected
alter session set succeeded.
VSIZE(DT)
----------------------
7
1 rows selected
LENGTH(DT)
----------------------
19
1 rows selected
VSize is really of use IMHO in understanding internal storage requirements of data.