I don't deny the importance of encryption, it is really what shaped the modern web, allowing for secure payment, private transfer of personal information, etc... See where I am getting at?
Removing encryption means that you can't reasonably do financial transactions, accounts and access restriction, exchange of private information, etc... You only share what you want to share publicly, with no restrictions. It seriously limits commercial potential which is the point.
It also helps technically. If you want to make a tiny web server, like on a microcontroller, encryption is the hardest part. In addition, TLS comes with expiring certificates, requiring regular maintenance, you can't just have your server and leave it alone for years, still working. It can also bring back simple caching proxies, great for poor connectivity.
Two problems remain with the lack of encryption, first is authenticity. Anyone can man-in-the-middle and change the web page, TLS prevents that. But what I think is an even better solution is to do it at the content level: sign the content, like a GPG signature, not the server, this way you can guarantee the authenticity of the content, no matter where you are getting it from.
The other thing is the usual argument about oppressive governments, etc... Well, if want to protect yourself, TLS won't save you, you will be given away by your IP address, they may not see exactly what you are looking at, but the simple fact you are connecting to a server containing sensitive data may be evidence enough. Protecting your identity is what networks like TOR are for, and you can hide a plain text server behind the TOR network, which would act as the privacy layer.