Jack_Nichols
Thanks for your comments as to the delete issue. Using Cocoatech Pathfinder, it works pretty much as you indicated it used to work before: deleting a pinned filed (local) from the sync root folder places it in the local trash bin. And deleting an on-demand file causes the file to dissappear from the folder, but, behind the scenes, Pathfinder is downloading it and then places the file in the trash bin. If you undelete it, then the file is placed back in the sync root folder and I suppose is subject to removal if the hd needs the space.
I agree its a bit goofy, but in a future iteration of onedrive, if deleting either places the file in the local trash bin (if local file) or directly deletes an non-downloaded on-demand file, there probably should be a notice that such is happening that pops up from OneDrive and just lets the user know that despite the dire warning from Finder, that the file can be still found in the OneDrive trash bin. Of course, the user should be able to turn off such notifications in settings once they get it.
Allowing easy instant access to the onedrive trash bin is a good thing to deal with this.