The spectral approach is used to examine the wave dispersion in linearized bond-based and state-based peridynamics in one and two dimensions, and comparisons with the classical nonlocal models for damage are made. Similar to the classical nonlocal models, the peridynamic dispersion of elastic waves occurs for high frequencies. It is shown to be stronger in the state-based than in the bond-based version, with multiple wavelengths giving a vanishing phase velocity, one of them longer than the horizon. In the bond-based and state-based, the nonlocality of elastic and inelastic behaviors is coupled, i.e., the dispersion of elastic and inelastic waves cannot be independently controlled. In consequence, the difference between: (1) the nonlocality due to material characteristic length for softening damage, which ensures stability of softening damage and serves as the localization limiter, and (2) the nonlocality due to material heterogeneity cannot be distinguished. This coupling of both kinds of dispersion is unrealistic and similar to the original 1984 nonlocal model for damage which was in 1987 abandoned and improved to be nondispersive or mildly dispersive for elasticity but strongly dispersive for damage. With the same regular grid of nodes, the convergence rates for both the bond-based and state-based versions are found to be slower than for the finite difference methods. It is shown that there exists a limit case of peridynamics, with a micromodulus in the form of a Delta function spiking at the horizon. This limit case is equivalent to the unstabilized imbricate continuum and exhibits zero-energy periodic modes of instability. Finally, it is emphasized that the node-skipping force interactions, a salient feature of peridynamics, are physically unjustified (except on the atomic scale) because in reality the forces get transmitted to the second and farther neighboring particles (or nodes) through the displacements and rotations of the intermediate particles, rather than by some potential permeating particles as on the atomic scale.