DNS devolution isn't a good idea here, since the external domain is a wildcard. We'll be paying for that mistake from long ago until (if ever) we change the internal domain name.
This is a pretty recent problem we're just now getting to because the DNS volume has been a back-burner issue - we'll look into permanent solutions for all Linux services after the CDN testing completes. Recommendations on the Linux DNS caching are much appreciated - we'll review each. It's something that just hasn't been an issue in the past so not experts on that particular area. I am surprised caching hasn't landed natively in most of the major distros yet though.