What's the argument against using one's own actual ___domain? In these modern times where every device and software wants to force HTTPS, being able to get rid of all the browser warnings is nice.
I think this is ideal. You make a great point that even if you were to use .internal TLD that is reserved for internal use, you wouldn't be able to use letsencrypt to get a SSL certificate for it. Not sure if there are other ssl options for .internal. But, self-signed is a PITA.
I guess the lesson is to deploy a self-signed root ca in your infra early.
Check out Smallstep’s step-ca server [0]. It still requires some work, but it allows you to run your own CA and ACME server. I have nothing against just hosting records off of a subdomain and using LE as mentioned, but I personally find it satisfying to host everything myself.