Yea I agree. I like Kotlin a lot and found the transfer from Java to Kotlin fairly straightforward.
Just not all clients are open to one more thing for their devs to do/learn. In the specific case for us, the devs were new to Android so they wanted to use a language they were comfortable in.
If they are new to Android how are they comfortable in Androids' take on Java? Trying to use paradigms from enterprise/server side Java in Android is going to backfire hard on all but the most trivial projects.