Yes, keep your db and app in the same region, provider doesn’t matter. Compose, Atlas and Galaxy all do AWS.
Meteor uses oplog, so there’s a lot of round-trips to the db from the app. If you move app and db too far, it will dramatically impact your performance and user experience.
I think you are right taking into account optic fibre and speed of light at 300 000 km/s ) The only slow downs are in switches between providers and data regions.