It's while back since last response here but this issue as well.
We have a hub in Amsterdam with internet breakout plus internal DNS servers which have forwarders to resolve public DNS.
Now we have a site in Santa Cruz, when they want to use internal server(customer.local) they use our configured internal server in Amsterdam. Same goes for public server.
now this client in Santa Cruz goes over to google hangout, then it gets IP adresses back from NL hosted google servers. The client is then having hangout with NL servers (including the latency penalty).
This is where I need to have split DNS: resolve for .local domain's on my own servers, and the rest using the local internet breakout.
Still not supported?