Earlier quoted context omitted.
.local is already reserved for mDNS.
.local is in this weird state where it's _technically_ not reserved, but most PCs in the world already resolve it with special non-DNS software because of the Bonjour/mDNS protocol. So you end up with the IETF standardising .local, because Apple was already using it, but ICANN never did much with that standardisation. I doubt ICANN will actually touch .local, but they could. One could imagine a scheme where .local is…
Presumably, ICANN, like any other committee, is not interested in self-castration. Which is what would happen if they challenged Apple.
ICANN could do anything with enough rule changes. And then everyone will ignore them.