It's common convention to name a domain something like companyname.local for internal Active Directory with integrated DNS.
I'm in a situation where the company name has changed and I would like to rename the domian. I'm aware of the difficulty and implications. I would like to rename it from 'abccorporate.local' to just 'xyz'. I can't think of any reason to keep the '.local', is there one?
What you are looking at is a Single-Label domain. It is a very very bad idea. There are many lists out there detailing the kind of horror you are looking at if you name your domain like this. There simply is no good reason to do this. What I would suggest doing is use a subdomain of a domain name your company owns. For instance, if your company owns xyz.com, name your AD domain ad.xyz.com. Here's a link you may want to check out regarding Single-Level domains:
http://support.microsoft.com/kb/300684