Hello,
Thank you for your question.
You can remove completely OnPrem AD , if you do not have any OnPrem clients or if you are not using any Local AD related roles for example. DFS, DNS, File shares, Hyper-V , Group policies etc.
Azure Active Directory is not designed to be the cloud version of Active Directory. It is not a domain controller or a directory in the cloud that will provide the exact same capabilities with AD. It actually provides many more capabilities in a different way.
Please also note that removing of completely OnPrem AD domain will required some additional configurations on network and configuring Azure VPN which will chargable.
Please have a look on below Microsoft threads and articles.
https://techcommunity.microsoft.com/t5/azure-active-directory-identity/migrating-on-prem-ad-to-azure-ad-and-doing-away-completely-with/m-p/1226118
https://learn.microsoft.com/en-us/answers/questions/50525/moving-on-prem-ad-ds-to-aad-ds-migration-required.html
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