> HTTP/2 is fully encrypted, so you need all your application servers to have a key and certificate
Nope. h2c is a thing and is official. But the article is right, the value HTTP/2 provides isn't for LAN, so HTTP 1.1 or HTTP/2 it doesn't matter much.
HTTP/3 however, is fully encrypted. h3c doesn't exists. So yeah, HTTP3 slower you connection, it isn't suited for LAN and should not be used.
BUT if you actually want to encrypt even in you LAN, use HTTP/3, not HTTP/2 encrypted. You will have a small but not negligible gain from 0-RTT.