Fancy bullet designs were never a real concern for the U.S. military. What the military wants in a bullet is:
1. Reliability.
2. Penetration.
3. Cost effective.
Weapons that don't function properly with a high degree of assurance are not weapons the military wants. Since ammunition figures highly in this concern, ammunition which has the lowest issue with reliabilty is desired.
Since warfighting involves distances and scenarios radically different than self-defense and hunting typically do, ammunition that can acheive high velocities and penetration are highly desirable. Warfighters often engage at distance, wear at least some kind of protective gear (if ony a helmet), and are trained to utilize barriers and such for protection. Bullets with a greater chance of penetrating are valued highly.
Cost effective is more than just the Dollar cost. Cost effective means not only can ammunition be bought in great quantities, but it's also easier to produce (and by a great number of sources).
It's also been a point of irony with me about the Hague convention with respect to hollowpoint ammunition. Not only it is really more of a niche ammo which detracts from the greater military concerns, its actual use could potentially free up enemy resources making the enemy logistically more formidable.
Having to deal with wounded soldiers is a huge logistic concern, much more so than dead soldiers. A battlefield full of wounded have to be dealt with. They have to be stabilized and evacuated, transported to some more secure area, and tended to medically. This incurs great risk on the personnnel who do this, requires huge expendatures in money, equipment, medical personnel, medical facilities, medicines, etc.
That's a logistical nightmare in coordination and effectiveness, to say the least. A big potential drain on the enemy's resources.
For people who would insist that hollowpoint ammunition would actually be a desired ammunition for common use on the basis of its supposed lethality on the battlefield, I would toss this out.
But since I've never actually seen anything on actual studies of of the efficacy of such ammunition on the battlefield (anecdotal stories don't count), I doubt it's really as serious an issue as people commonly make it out to be, either way.