Many people wear tefillin on chol hamoed in Eretz Yisroel, including some gedolim. However, some do it betzinoh so it is not so well known.
One such godol is the Erlau’er Rebbe. You can go in his beis medrash and see him with tefillin. He keeps the minhogim of his zeide, the Chasam Sofer, to wear tefillin on chol hamoed and daven nusach Ashkenaz.
There are even some minyonim where people wear tefillin on Chol Hamoed, like a Yekkishe minyan in Bnei Brak that I know of.
Bekitzur, Al titosh toras imecho, keep on following your minhog and Al yisbayeish…., as the Rama says in beginning of Shulchan Aruch Orach Chaim.