It's called ZTA, Zero Trust Architecture. Devices shouldn't assume the LAN is secure.
This is a problem impacting mass users, not just technical ones.
What attack do you think doesn't have a solution? CSRF attacks? The solution is CSRF tokens, or checking the Origin header, same as how non-local-network sites protect against CSRF. DNS rebinding attacks? The solution is checking the Host header.
It's just the default. So far, browsers haven't really given different IP ranges different security.
evil.com is allowed to make requests to bank.com . Similarly, evil.com is allowed to make requests to foo.com even if foo.com DNS resolves to 127.0.0.1 .
I remember having "zone" settings in Internet Explorer 20 years ago, and ISTR it did IP ranges as well as domains. Don't think it did anything about cross-zone security though.
I deal with a third-party hosted webapp that enables extra when a webserver hosted on localhost is present. The local webserver exposes an API allowing the application to interact more closely with the host OS (think locally-attached devices and servers on the local network). If the locally-installed webserver isn't present the hosted app hides the extra functionality.
Limiting browser access to the localhost subnet (127.0.0.1/8) would be fine to me, as a sysadmin, so long as I have the option to enable it for applications where it's desired.
One of the solutions in the market was open source up to a point (Nowina NexU), but it seems it's gone from GitHub
For local network, you can imagine similar use cases — keep something inside the local network (eg. an API to an input device; imagine it being a scanner), but enable server-side function (eg. OCR) from their web page. With ZeroConf and DHCP domain name extensions, it can be a pretty seamless option for developers to consider.