IMO that's ideal situation: when service does not encode any routing information and just talks to another service via fake DNS name. And actual routing is performed by infrastructure tools which can implement TLS, collect metrics, collect full HTTP logs if asked, implement retries, caching and so on. This is about outgoing connections and incoming connections.
It could also save on container size theoretically. Implementing TLS is a daunting task and requires many kilobytes of code. Implementing HTTP is easier task. So you can strip TLS implementation and achieve lighter containers.