Trevor_Pott Thank you for taking the time to provide your feedback. Regarding the change to the macOS storage model, this was done because Apple deprecated the kernel extension that we were using for OS integration. Unfortunately, this decision was not under our control. The issue with external drives is a limitation in Apple's new model, and we've already passed on this feedback to them, as we've heard it from a number of customers.
For the technical details, read the update on 2/1 in this blog post, where our engineer explained some of the limitations: Inside the new Files On-Demand Experience on macOS. After the release, we made the following changes in response to user feedback: Updates to Files On-Demand on macOS.
Note that the change to enable Files On-Demand for all users was not based on revenue or increasing storage consumption; rather, it was to create a more streamlined experience for the majority of users, while enabling advanced functionality to pin all files. As I mentioned above, most of these changes were in response to Apple's File Provider APIs and is not under our direct control. We're continuing to work with Apple to ensure a good experience for OneDrive customers.