I disagree that YAML is so bad. I don't particularly like HCL. The tooling I use don't care though -- as long as I can stil specify things in JSON, then I can generate (not template) what I need. It would be more difficult to generate HCL.
I'm not a fan of Helm, but it is the de facto package manager. The main reason I don't like Helm has more to do with its templating system. Templated YAML is very limiting, when compared to using a full-fledged language platform to generate a datastructure that can be converted to JSON. There are some interesting things you can do with that. (cdk8s is like this, but it is not a good example of what you can do with a generator).
On the other hand, if HCL allows us to use modules, scoping, and composition, then maybe it is not so bad after all.