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Can you explain why this is a Chrome-specific issue? I believe that it applies to all web browsers, including Internet Explorer for UNIX (which I do have access to and I can test if you would like me to confirm). I remember this being a vulnerability class with CUPS, which listens on http://localhost:631/ , about 10 years ago. In particular, note that the request is not made to localhost, it's made to a DNS name that…
How about caching a DNS result for the duration of a tab? Doesn't solve everything but probably good enough. I don't think it'd break many things (sure it may affect some round robin DNS things for long-open pages that are Ajax'ing back home frequently, but that should be minimal)
I think caching all DNS resolutions is going to make a lot of cloud-native websites very sad (e.g., I'd imagine something like Slack would break quickly), and also cause poor performance because you don't get the benefit of a CDN's DNS server telling you that other servers are closer now. A lot of people have long-running tabs.