Hey,
There are multiple factors to be considered:
- maintaining a SQL mi instance is very costly. So just for the sake of test cases ,one need not create a new instance but deploy a new database in the same instance ( with a different name)
- though there is no cost for Azure logical server, meaning you can create a SQL server in Azure with no cost bearing .
One can either create a database with new name in the same server or deploy it on a new server.
And finally based on my understanding, one can migrate database from on prem to Azure but nit vice versa.
So my thoughts are you cannot restore Azure SQL database to n onprem server as there are some features like elastic queries only for Azure SQL database