There's a weird area between the workloads that fit on a microcontroller, and the stuff that demands a full-blown CPU. Think softcore processors on FPGAs, super tiny MIPS and RISC-V cores on an ASIC, etc. Typically you run something like Yocto on a core like that. Maybe MontaVista or QNX if you've got the right nerd running the show.
So you have serious compute needs, and security concerns that justify virtual memory. But you don't have infinite space to work with, so hardware acceleration is important. Having a standard API built into the kernel seems like a decent idea I guess.
And yet, I've never heard of AF_ALG. I've never seen it used. The thing is, if you have some bizzaro softcore, there's a good chance you also have a bizzaro crypto engine with no upstream kernel driver. If you're going to the trouble of rolling your own kernel with drivers for special crypto engines, why would you bother hooking it into this thing? Roll your own API that fits your needs and doesn't have a gigantic attack surface.
So grain of salt.
I've liked it nevertheless for context, as augmentation to parent's post.
You've almost certainly never had a system that supported any hardware accelerated crypto that also required a kernel module.
It's much easier to expose as cpu extensions.