How about addressing actual items your on-prem customers want:
- Removing basic auth across the product stack and making it easier to integrate MFA solutions such as DUO/RSA etc across more than web-based portals that third parties have filled in (i.e. ActiveSync, EWS, OAB distribution etc).
- Not making the licensing for on-prem products so ridiculously uneconomical to push your cloud-first agenda.
Customers have a legitimate requirement to keep data on-premises for data solvently, privacy or other business related requirements.
Little tip Microsoft - a company that doesn't listen to its customer base and pushes its own agenda will lose confidence with the market and eventually fail.