Adding machines to a domain is far far more common on bare-metal deployments which is why I said "cloud native." Adding a bunch of cloud VMs to a domain is not very common in my experience because they're designed to be ephemeral and thrown away and IPA being stateful isn't about that.
You're managing your machine deployments with something so of course you just use that that to include your cert which isn't particularly hard but there's a long-tail of annoying work when dealing with containers and vms you aren't building yourself like k8s node pools. It can be done but it's usually less effort to just get public certs for everything.
To be honest, with "cloud-init" and the ability for SSSD to send record updates, I could make a worthwhile cloudy deployment
To your point, people don't, but it's a perfectly viable path.
Containers/kubernetes, that's pipeline city, baby!