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Wait, why doesnt apple just fix its software? .local isn't reserved. Seems like picking some arbitrary fix over another isn't helping matters.

Well, .local would be reserved if the mDNS draft, http://tools.ietf.org/html/draft-cheshire-dnsext-multicastdn... , ever progressed to an actual RFC. It is already a de-facto standard, with several implementations.

Because in 99.9999% of use cases it won't break.

That, and mDNS already being used as a psuedo-standard with things like Avahi.