I think environment variables are recommended to pass configuration parameters, and also secrets, in containerized applications managed by container orchestration systems.
By design, other processes cannot inspect what environment variables are running in a container.
Also, environment variables are passed to child processes because, by design, the goal is to run child processes in the same environment (i.e., same values) as the parent process, or with minor tweaks. Also, the process that spawns child processes is the one responsible for set it's environment variables, which means it already has at least read access to those secrets.
All in all I think all your concerns are based on specious reasoning, but I'll gladly discuss them in finer detail.