Yes, but that can be achieved by using a hostname alone (router, nas, printer, htpc...). What does the domain bring?
mDNS is probably sufficient for most people and you don't need to setup old school DNS on a local network. (But if you do, a purpose-built TLD like home.arpa is a good choice.)
With all new gTLDs it’s easy to have a collision when someone buys the “router” TLD.