"Can anyone elaborate on this line "The self-service version of Windows 365 small business is already supported for Azure AD only."
What I believe this means is if a customer has a cloud-only environment - went to office.com and signed up for an M356 Business Premium account - they can essentially self-service subscribe to Windows 365 because it supports Azure AD for authentication, there will be no on-premise Active Directory required, just the Azure subscription.
You can refer to the available configurations towards the top of the article under the heading Fixed-price licenses: sizes and performance. It would be safe to assume that "small business" offerings might be a subset of the fully available options. We'll have to wait until more information is available to know for certain.