Networking in k8s is the poorest designed aspect of Kubernetes. So much so, I'm honestly surprised it didn't kill off K8s early on. You still can't get proper service layer load balancing out of the box w/ iptables.
I'm not sure the history - it's the simplest thing possible, I guess, but doesn't perform very well at the most basic of tasks. To try and solve this, we have the current mess of service meshes, CNI, etc. It's going back to the middleware days of yore - which I think anyone with operational experience should know we really need to avoid. Having multiple layers of network proxies and masquerading between service calls, on an internal network, is just ridiculous and difficult to debug or operate at scale.