I agree: "Yes and no".
Obviously it is sorted on some level: You can use a custom domain now.
It's just that you have to concede to...
Which would be a pain for me, because for the TLD that I use their price is 3x-4x of what I pay elsewhere
- Only 1 mailbox / no aliases per user
Which kind of kills the whole thing for me. No various boxes for various uses, no box for the printer, nothing to collect RSVPs to, nothing at all - just 1 box per person...
That's just ridiculous for my use cases.
... So in the end, the solution as it is right now does fullfill the requirements of a share of all users, but it leaves so much to be desired why a lot of other users will not start using it.
Which in turn again might make MS think that the whole idea has no potential, which in turn makes it unlikely they will develop it further.
Very sad.
And yes, you could of course upgrade to "Office 365 business". But honestly, that is so much more expensive, I'm just not willing to pay that much more for a private family solution... No way.
We'll just stay with "traditional separation" of email and office.
You get a that much better email solution (*with* custom domain of course) elsewhere...