Well, after a few days waiting for a reply from somebody here, I tried to see if there was anything else that I could do on my own. I was going to go back online hoping to find some other advice elsewhere, but then something came in my mind - maybe the fix for this problem is so simple it was under my nose all along - maybe if I simply uninstalled IIS it'd reset the installation.
So, I did just that, uninstalled IIS and then reinstalled it. It did reset it, and it works just fine on my computer, and not on any other computers - just as I wanted. I should've tried this all along! So, if anyone else stumbles on this page, and has enabled an insecure intranet and couldn't figure out how to disable it (like I was in the predicament of), if you haven't tried uninstalling and reinstalling IIS - try it - it should work.
Now, although I have a better idea of what a more secure intranet should be (as I mentioned above), I just thought it might be a good idea to ask people here on stackoverflow for there suggestions and opinions on how to go about that on another question post.