As technologists, we tend to ask why decisions like this are made, expecting an answer that is rooted in the technology. Unfortunately for us, Microsoft became a sales and marketing company more than a decade ago, so technology is no longer the primary driver of their decisions.
Could Microsoft allow a SharePoint Subscription Edition farm to bind to their cloud-based Office Online Service? Absolutely, but customer demand no longer drives where Microsoft's development or support resources are spent. In the conversations I've had with Microsoft over the past decade, they are not interested in finding out what customers want, they are interested in telling customers what we need.
The reason for the decision to retire OOS is actually very simple: to maximize Microsoft's revenue.
Removing on-premises features from their products has become a well-executed pattern of Microsoft wielding their monopolistic influence over customers. It is a blatant to attempt to force us into paying Microsoft higher and more regular income streams by converting to cloud-based (usually inferior) alternatives.
In short, this is just another Microsoft money grab. Prove me wrong, Microsoft - I dare you.