Not true. Plenty of people do this. I think some don’t because of the high additional cost vs tile, and others because they just want a different look.

Our builder said "no one is doing that anymore" to about half of the choices we made. If you like it, do it. Mid-century modern is back...whose to say that your choice won't be in again soon.

Maybe he/she said that because he doesn't like to do that kind of installation....

Yes, builders are adept at being convincing.

I agree the little 4” backsplash is not done but lots of people are doing a full backsplash in the counter material. That textured wall post is a good example of trying to get out of work.