The problem is that HTTP/2 pretty much forces encryption. Most people don't want to deal with certificate management/rotation on every single microservice's application server.
In practice HTTP/2 forces encryption. For example Amazons ALB docs say "Considerations for the HTTP/2 protocol version: The only supported listener protocol is HTTPS." [1]
That assumes your application can connect to the internet and can be accessed from the internet. There is a vast array of offline-only kubernetes clusters.
You can still of course use self-signed certificates (or setting up your own "CA"), but you'll hit other problems related to runtime certificate reloads and so on. It's still a lot of work to enable SSL for fully offline services.
On kubernetes, cert-manager might get certificates for you, but you'll still need to make sure the application correctly reloads those certs (many application frameworks have no way to reload a certificate at runtime).