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This RFC is recommending a default, non-unique domain for residential routers to ship with.

If you have a domain of your own, by all means use it. Most residential network operators don't.

What exactly does that mean? 'example.com' is registered to IANA since 1992.

OC replaced the real domain with example.com. Could have used int.google.com.

It means grandparent commenter ain't sayin':

> where example.com is a domain I've had for 30 years

(That domain has that reservation specifically for use in arbitrary examples, as here.)

It was a placeholder... an example. (You know, the documented purpose of example.com!) I am not posting my actual domain here.

So public DNS contains records pointing to private IPs?

Yes. I could implement split DNS, but I don't.

There was a famous joke where someone pointed a subdomain to localhost and invited anyone to hack it.

I do the same with my personal domain. Combined with a wildcard cert, all my internal services are on valid certificates with ease.