I don’t oppose reasonable crypto in the kernel, like WireGuard.
Except, you know, many things
We need on disk encryption, and we need to be able boot from an encrypted disk. So we need encryption for that.
We need network filesystems, and we need the traffic over the network to be encrypted. So we need encryption.
IPsec, for better or for worse, is authenticated and partially encrypted at the transport layer, so if we want a linux machine to speak IPsec, we need encryption.
Fixing/changing this would require a huge restructuring of the kernel; it would basically require switching to a microkernel. Given the fact that nobody's ever written a microkernel that doesn't completely suck ass, I don't know that it would be worth the effort.