There are already kubernetes bindings available https://github.com/dhall-lang/dhall-kubernetes .
The syntax in the examples looks a bit more verbose and less readable than yaml but I think building sensible abstractions on top of it will alleviate the pain (abstractions here are innocuous since you can 'normalize' the code and they disappear)
I'm not too happy with the default formatting though. I think if the formatter indented nested values similar to yaml that would look better to the human eye.