Same environment and requirements as above. Solution: use federation with Active Directory Federation Services (AD FS). Does this solution meet the requirements?

No, this solution does not meet the requirements. While AD FS can provide federation for on-premises Active Directory users, it is not a cloud-native identity solution and introduces additional infrastructure to manage. The requirement is to minimize management overhead and use cloud-native services where possible. Azure AD Connect is a better solution for synchronizing on-premises AD with Azure AD, and Azure AD itself provides robust cloud-native identity management and federation capabilities without requiring AD FS.