It seems like the logical end goal would be you pay your subscription fee to Microsoft and you just sign in and all your subscription-based apps and data are just there, in the cloud, always available. You stop paying, they'll all go away... or are limited in some way.
"Windows 365 is built on Azure Virtual Desktop, but it simplifies the virtualization experience—handling all the details for you. "
Now that Citrix and VMWare brought this business to Azure, Microsoft is launching a competing offering. Nice guys they are lol.
"Simplifies the experience" means, that with just 3 provisioning checkboxes against a user object in 365, you can grant that user a Windows 365 machine including all the 365 apps and your standard policies. It takes about 20 minutes from enablement for the VM to be ready, and the VM remains persistent for the lifetime of it's provisioning. The cost model is a fixed fee per provisioned user, per month.