There are two advantages to high velocity.
1. More kinetic energy/more destructive power
2. Easier to hit with, especially deflection shooting.
And several disadvantages.
1. As stated earlier 10% increase in velocity needs about 20% more propellent which means
A. more cost in raw materials per round of ammo. Both powder and brass (or steel) to hold it.
B. more weight of ammo per round
C. often a larger and heavier gun, and a lower cycle rate.
D. faster barrel wear.
Limitations of the platform apply as ever.
A high velocity gun is not such a great idea if it cannot fit on the positions of the aircraft being made, or these just to became mass produced. See the Mk 101 and 103 - good for putting the holes in enemy armor, excellent as AA guns, but next to useless as something one will install on the Bf 109s or Fw 190s and go do air combat. Useless as bomber defense guns.
Germans did have the high velocity gun in the MG 151/15, and they were quick to reduce the MV and increase the target effect when going to the MG 151/20.
When looking at small explosive bullets when does 1-3 grams of HE beat several thousand joules of kinetic energy of impact force?
What is cost of the small explosive bullet vs the cost of a non-explosive bullet in materials, machine time, labor? Times several million or tens of million.
Since most of the HMG users were willing to have the HE ammo produced for these guns, seems like they considered the benefits outweighing the cost.
Americans, with a lot greater usage of HMGs, were not hard pressed to make each projectile going kaboom.
Several thousands of joules of impact force that is still travelling past the enemy aircraft tail or wing that the bullet just pierced does not seems like the great economy, either.
Or with 2000hp engines (and jets are way above 2000hp) do you just stick in number of large, high velocity, fast firing 20mm guns (four 20mm guns at 750rpm each) and go back to research? Nations were still arguing during the 1950s.
German focus - this thread being about them - was well past the 20mm guns even before the 2000 HP engines were to be had by them.
They never used the large, high velocity 20mm guns either, bar experimentally.