Years ago I had to support a tool that used YAML as a configuration language, and a transport between different applications. Holy. Hell. First of all, don't ever try to edit a YAML file by hand. You will introduce whitespace or other characters that will break the file, and you will not know until you run it and it breaks something. The reason you will not know? Not all YAML parsers are the same. Some will interpret…
Well your last sentence is the whole point: What is a sensible configuration language? For example what would have been decent for Ansible?
For a sensible language, I would model something after Apache's. Simple, direct, easy to read, easy to write, easy to extend. It's like a server admin who barely knew HTML 1.0 wrote a config format. Perfect for the things it should actually be doing.
Another option is to take a simple format and extend it with another format or language. For example, you could add SQL to a simple file format, and suddenly tons of people can extend the config with some complex logic. But I also think templating and macro languages should generally die in a fire.
INI files aren't bad. They aren't a language, but they are good for simple use cases and a flat structure. Yes, you can have hierarchical section names, but it's a pain. If you want to use INI, you should probably use TOML. But there's very little incentive to add a TOML parser to a simple app when they could just suck in a JSON file. (Personally, I use JSON files, but only because I'm lazy, not because it's a good idea)
The biggest problem with things like Ansible is they'll give you enough rope to hang yourself. First you get defeated by whitespace. Then you get defeated by the stupid YAML rules. Then you get defeated by complexity like inheritance, namespace conflicts, and the shittiest debugging output ever. Then you get Jinja madness embedded inside Ansible madness inside YAML madness, and nobody knows how it works and can even touch it for fear of breaking everything. And of course, there is nothing that can parse it other than Ansible.
I think if Ansible had been TOML+Jinja it would have worked. It would have been ugly and clunky, but it would have worked. (The engine itself and their stupid rules about structuring your project should also die in a fire, but that's a different subject)