Yes, I concur with your understanding and I am in the same position as you with regards to Google Apps. I have it free because I had subscribed a long time ago.
I still do not see why MS do not want to open this up for O365 Home. After all, we are paying an annual fee for 5 users.
As Tom said, it is very common nowadays for families to own a domain name ... which they cannot use with O365.
Personally, I do not think MS have anything to lose if they give us this functionality. I just hope that they look at these threads sometimes to get our feedback :-)
MS can potentially lose a lot with this. the amount of business users who are incorrectly licensed or who find means of a cheaper solution are unreal.
Why not just modify your outlook.com address to come from a from address and direct your domain email directly to outlook. The only downside i see to this is that the true email address is @outlook/hotmail.com
I personally would not be in favour of MS opening up domain use for personal o365 home as i know a lot of my customers would start using this and stop using office 365 business.
I am surprised that MS have not upped the pricing for 5 users home edition as the online storage is generous a long with the office license. The personal to office 365 home for a year is less than $10 a year and can be stacked 4 times!!!
When MS stopped Technet it caused panic as many users were using this for production use instead of dev/test.