DeanTeam - Direct Send really is how any SMTP server works - it listens on port 25 and accepts messages addressed to recipients within the tenant's accepted domains. However, by design, basic SMTP protocol is vulnerable to spam attacks, as it lacks built-in mechanisms to effectively prevent them.
In your case, you've implemented strong protections: Fully configured SPF, DKIM, DMARC(p=quarantine sp=quarantine pct=100), with Org, partner and "relay" connectors secured to specific IPs for your organization. These measures should effectively block unauthorized email. Any illegitimate messages should either be directed to the Junk Mail folder or quarantined.
In your case, enabling or disabling Direct Send is largely irrelevant, because you anyway are not accepting email from any unauthorized source, you already blocked that by "connectors secured to specific IPs".
If someone does not have such connector, the EOP policies should junk/quarantine those messages because you "Fully configured SPF, DKIM, DMARC(p=quarantine sp=quarantine pct=100)". If this is not happenning, chances are high that your EOP/MDO policies are not configured properly.