The Office apps are better but everything else is significantly worse. All the systems are glommed together. The administration of everything is a nightmare. Try to setup things like OneDrive is a travesty. My girlfriend has O365 for her small business. She has the original account. She was trying to do something relatively simple with Teams the other day and it wouldn't let her. It said she wasn't an admin and she should contact hers. There is no one else, she IS the admin. So she signed up for a different service instead. I have nothing but trouble using the broad MS online ecosystem. But so many people are locked into and only know Windows and Office that switching cost is too much for most people.
And this is the problem which MS creates for itself by sticking everything together into one huge gluey lump for you to get stuck onto, quite intentionally, but lack of quality plus emergent problems get you. MS has never been reliable throughout, and never will be until it gives up on complexity, and it won't do that because it's addicted to complexity.
I imagine it's easier and cheaper for Moft to throw customer support at these types of problems than to solve them. Which, honestly, is probably better than offering better products with no support at all (Google, where even the products aren't necessarily better)
A company with as many products as Microsoft can afford to be crap at so many things they do. Even a product they do well today, maybe corporate strategy changes tomorrow and condemns it to permanent neglect. It makes much more sense to use a solution from a company whose future is pinned to that one product.
Office365 is lightyears ahead for pretty much everything, from a business perspective.
From a nerd persepective, outlook mail is a bit uncomfortable to use and Teams has usability problems (slack is still better in that regard).
However you get Teams basically for free with an office 365 subscription, and you would have to buy the office suite anyway, so...