Hi Cory. This is a great question and I've looked at this myself previously as I certainly concur with the possible value. For a variety of reasons though, this is not something that is planned on being reversed (to my knowledge). There is an active workstream though to improve grouping and targeting as a whole though and provide better, more flexible, granular, and responsive constructs to Intune. There are no timelines to share on this other than sometime in the "near" future. To fill the gap for the time being, the best way (IMO) to approach these types of targeting challenges is to use the Graph API and scripts to leverage the information that is currently captured elsewhere (in your on-prem AD in your scenario) to populate AAD/Entra ID groups. I fully acknowledge there's some overhead in this and it is additional effort on your part, but once set up and running, will achieve your goals here (at least in the interim).

Thanks for joining us, Cory. Working on recommendations for this.