Hi Daniel,
I do not see Microsoft moving away from this any time soon.
There are a lot of environments (hybrid) that require to stay hybrid. Hybrid Active Directory environments have become increasingly prevalent and are often deemed indispensable. The necessity for maintaining a hybrid configuration arises from a confluence of factors, primarily driven by the intricate web of applications and privacy considerations inherent in the modern business landscape.
However, if you can (and do not require anything on-prem) then I would recommend slowly working towards having everything in the cloud (Entra ID).
If this is helpful please accept answer.