I very much appreciate you sharing your approach here and I agree with it. OneDrive is working much better than it did several years ago and I have heard anecdotal evidence that your approach is working for a lot of people (although not supported), and I will reiterate this advice (based on the school of hard knocks):
- Always keep on this device to avoid latency when first accessing files (or datasets composed of many files like gdb, shapefiles, rasters with many aux files)
- Avoid multiuser editing of a workspace - this is no different from a network share, except with OneDrive you can and should enforce this with sharing settings!
- Pause sync to avoid performance hits and possible latency/collision instability when doing heavy editing or geoprocessing.
Non-ArcGIS tip - multi user editing of O365 documents (Word, Excel etc) is supported by Microsoft, but I have had best luck editing using the online editing, letting O365 deal with conflicts while you are editing on the server side instead of depending on sync of the desktop to resolve conflicts, which can cause creation of local copies if things go wrong (especially across Mac/PC or if there are sync latency issues). This works great once you get used to seeing someone else editing while you are!