"They arent using "public" domains however, so I am not sure what the concern is." . That's a strange view after you just said that users have to go to:
https://outlook.office.com/mail/inbox
or //outlook.com/owa/contoso.com
Where exactly do you think people who have a free and public email address go to to login to their outlook.com email address? That is a public and free internet email address provided by microsoft and is really under Microsoft's domain. As in they in control of the information with it. Having company email under some other domain means that it is no long within exclusive privacy and control of the company. While I understand that it's not that simple, at the very minimum some impression that the company is in control of the email is mandatory. The way you're describing it now, might as well just have all the employees sign up for free microsoft accounts cuz it's all the same.
What I'm asking for isn't hard to understand, in fact it wasn't hard to implement. Access to the OWA url was possible via the "domainname.onmicrosoft.com" domain before via the typical Ms Exchange URLs for OWA,ECP, etc... The E1 that i signed up for is Microsoft Exchange is it not?
Just because microsoft is hosting it doesn't mean it has to get all pulled together into Microsoft's domain without any means of distinction from a personal or business or worse yet who's business domain people are logging into. By forcing people to login to go to and login to microsoft.com, outlook.com or office.com then where exactly does it tell them they are logging into MY companies PRIVATE email system?