Use of own domain name with Office 365 Home/Premium

You dont need to own a business to buy O365 for businesses. And it includes everything you are asking for - it costs more than the Home version but you mentioned you are willing to pay more. 

In the past they offered just what you are asking for in the US, UK & Canada but they discontinued it because there was not enough demand... but for those who grabbed it at that time, they continue to use it. But it was only domain hosting with Outlook - Office and Onedrive costed an additional 70USD per year.

If I was you, I'd order a business plan. 

A business plan for two users (myself and my wife) is exactly double the price of a home plan ($100 vs $200), just for the use of custom domains.  I'm interested in moving from my current email provider, but I have my mail routed through a custom domain so I have to be able to move it as well.  I would like to make Microsoft my email provider so that I can take advantage of Microsoft's connected ecosystem, but I'm not interested in dipping my toe in that pond when it lacks such a basic feature - a feature it used to offer to paid personal plans. 

Protonmail, Tutanota, Gmail, Fastmail, pretty much all of Microsoft's competition offers this easy to implement feature, but for some reason Microsoft has regressed in functionality for no apparent reason.  I'm not going to consider paying double price for something that isn't even keeping up with the competition.  I'd rather just look for a different connected ecosystem.

@southy_de - I totaly agree with you. I would also pay additional fee for being able to setup my own domain. But it isn't worth additional few hundred bucks. Also it is not worth to have different hosting provider for email service cause I still expect to have full integration with other MS services. So unfortunately there's no solution for us and MS don't want to hear our voices as it seems we are too small target group for them.

But I don't understand such approach. I think it wouldn't be much administration overhead to provide us such niche service. No big deal for them. Just have regard for all of their clients, not only the ones from biggest target groups.

Actually the outlook premium was 19.95 /year 

If I log into the control panel now it tells me to renew the service, but when I click to renew I'm forwarded to the account page for my MSA, and there is no option to renew outlook premium there.

I do have a O365 sub, and I figure maybe that's why I'm  not presented with option to renew.

No support personell was able to help me with a clear answer. The best thing I got was a promise that no changes would be made on their part to server settings, and my account would not be moved to a different server because of my outlook premium status. 

Still I don't feel confident...

Compare it to the "outlook.com premium package" that was available in the US: wasn't that ~70 USD / year?  I would gladly pay 70 extra.

But not 420 extra.

Yes, great! That is the thing exactly. I don't understand why so many in this long chain don't understand this to be the issue.

You dont need to own a business to buy O365 for businesses. And it includes everything you are asking for - it costs more than the Home version but you mentioned you are willing to pay more. 

If I was you, I'd order a business plan. 

I am willing to pay *a reasonable amount* more for this feature  (lokking at how much my email provider is charging me, about that kind of money).

I have a household where we (5 people) really use all 5 licenses of a "O365 home" license.

That is (officially)  ~100 EUR / year for 5 people.

(and that is only the regular price.)

O365 business is about 9 EUR /month/person, so = ~520 EUR /year for the family.

My email provider costs (for 5 boxes of OpenXchange)  ~10 EUR /Month.

Both services combined makes up about 300 EUR difference. Or: about 2-3x the price.

I would simply not call this an option. It's humiliating.

Compare it to the "outlook.com premium package" that was available in the US: wasn't that ~70 USD / year?  I would gladly pay 70 extra.

But not 420 extra.