Why do you think browsers were "lying" when they said the certificate wasn't to be trusted? Without any kind of "trusted third party" involved there is no reason at all to trust your self signed certificate.
The fact is, my real-life identity was never verified as the owner of the domain by a "trusted" third party. However, the encryption key comes from the same server serving the content, so what, really, is not to be trusted? I.e. the cert applies to "domain.com" and is being used on "domain.com". There is no risk of MITM attack, only that "domain.com" is not what you think it is.
That very well could be a MITM attack