I think the OP is dead on. The goal here is to encrypt your connection, not to bypass industry-standard security measures.

Once you install the cert (client-side) you are protected just as you would be with a publicly signed cert. If you are ever subjected to a Man-In-The-Middle attack or a spoofing attempt, the exact same flags would occur.

This is not a solution for eCommerce, or for your web-app's user sign-in page. This is for your admin panel and backend which only you (or your staff if you have one) will be using.

If you actually install the cert to your local certificate store (as opposed to just cancelling out of the alert) you should be solid.

Great post Josh.