Overhead of resource consumption (Istio adds a side-car container to EVERY Pod)
Upgrades of Istio will likely require downtime as all side-car containers will have to be deleted and recreated with the new version (interrupting network traffic temporarily)
Basically, Istio is a more advanced and feature-rich take on the traditional NetworkPolicy.
Features:
https://blog.aquasec.com/istio-kubernetes-security-zero-trust-networking