Licht has the right side on lockdown. If Gio takes the place of Pepe (which he should), then Vidal is right there to regulate right next to Licht if needed. Pepe works hard yes, but the creativity Gio would provide this team and our attack along with his vision would far outweigh whatever Pepe does.
A front 3 of Mikro-Matri-Gio would see a lot of movement & creativity from both sides. Mirko & Gio would be switching all game as the build up calls for. Also, Pepe has a knack for killing our flow going forward, especially when he has possession. His first touch often lets him (and us) down.
Starting Gio over Pepe should be a no brainer. Not sure why it's even being questioned.