I have created an Azure tenancy and configured the following:
Azure AD with:
Got an update from Azure Support:
It's not working because:
So, you could add 2-3 low power VM's to achieve AD + ADFS + AAD + AAD-DS but that's definitely not the ideal way.
If I get information on future plans, I'll share them here.
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Have the same issue and some open tickets. Will update this answer once I get additional information.
As of today, only a federated setup is supported as documented here. You have to establish an ADFS setup using AD Connect.
That's something AAD-DS should provide for a cloud-only solution. AAD-DS is still preview...