You run into the same problem with config DSLs, except now you're dealing with a DSL. Config is almost never going to be static.
The counterargument is "eventually you'll need every facility provided by a programming language, so just start with a programming language."
I'm not sure how I feel about it. The YAML templating situation in Kubernetes is a [shit show][1]. Then again, I did once cave into the temptation of writing a [lisp-like XML preprocessor][2] to make my configurations less verbose. It doesn't have any access to the environment, though, so it's not a general purpose configuration language, just a shorthand for static XML.
And yes, I have very bad memories of Kubernetes YAML, also YAML itself.