Isn't Kerberos explicitly designed to run over untrusted networks and not require any additional transport encryption?
You could argue that the common implementations are large piles of legacy C with questionable memory safety that could open them to exploitation by malicious actors, but that's an implementation detail rather than the protocol itself - and I believe there's at least one (mostly?) memory-safe implementation in Java called Apache Kerby.
Yes, but OAuth has one major upside: HTTPS only.
No one wants to create site-to-site VPN networks to flow Kerberos.