The solution would be to allow self signed + pinning.
You click to a new box on your network with a self signed cert. Instead of blocking you basically (yes, you can flag flip, go to advanced etc etc), it says, hey this is self signed cert, do you want to pin it? You say yes. It pins that cert to that internal IP.
Now you've got encryption.
Let's say in a rather far out case someone spoofs internal resolution. You are generally already owned at that point, but if they redirect IP X to a new cert, browser could have a popup saying - heads up, the cert for this IP now mismatches. Be very careful and do the current basic block/lockout approach.