It is used, particularly with spices and fresh fruit, but sporadically for all kinds of food. As for why it's not universal: There are some concerns about radiochemical effects, mostly regarding nutritional degradation, with extremely high doses such as might be used to sterilize raw meat for storage at room temperature. While I can't source this now that I'm looking for it, I vaguely recall reading a survey about fo…
In a lot of European countries UHT is the norm, in a lot of others it is virtually non-existent.