NIST has form for juking the standards, or at least for letting the NSA juke them. If they're not completely transparent, then any standard they recommend is open to question, which isn't good for a standard.
The original argument is not "they created encryption that isn't broken before". The argument is "encryption created by competitions that are only refereed by NIST is trustworthy"
Blake2 was not created (December 2012) until after the SHA-3 competition, which ended on October 2012 (Keccak being the winner). It was Blake1 that was entered. Blake3 was released in 2020.
I'm sure a Keccak2/3 could have also been better than the original Keccak1, but that was not available either.
For high entropy inputs, like for a HMAC signature, you want the hash to be fast because its practically impossible to brute force the 256bit input key, and you often apply this to large inputs.
SHA-1 SW according to smhasher is 350mib/s as is MD5, so never use MD5 as SHA-1 is always stronger (sha2 supposedly is 150mib/s). Hw accelerated SHA-1 and SHA-2 are both ~1.5 Gib/s and on x86 HW acceleration is always available.
Blake3 is the most interesting because it’s competitive with SHA2 even without HW acceleration. I wonder how it would fare with HW acceleration.
Not really? SHA-2 was released in 2001:
* https://en.wikipedia.org/wiki/SHA-2
Blake3 was released 2020. I'm sure if the folks that created SHA-2 did a hash in 2020 they could do something better/faster as well.
FWIW, SHA-3 is slower than SHA-2 although of course SHA-3 is a totally different construction from SHA-2 by design.