Office 365 Family & Exchange Online Plan 1 as a "family solution"

Soldato
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Hi All,
I'm hoping there are some people more familiar with the Microsoft licensing and interactions who might be able to help - as I'm getting conflicting information from various places.

As a family we share an Office 365 Family subscription, 6 of us paying around £10 / year and having 1TB OneDrive and all of the MS desktop apps.
I own a personal domain which is surname.com however I never took advantage of adding a personal domain to my O365 Family subscription, so I've just been doing some basic forwarding for the addresses I've setup for family members.

Exchange Online (Plan 1) licenses would give me 50GB mailboxes for around £3.50 / user / month - which seems a good way to get a reliable, "proper" email solution for everyone. However, I have conflicting information at this stage.
I'm told that because my Microsoft account has a "home" package assigned to it (Office 365 Family) I wouldn't be able to use it to create a Tennant and buy OE1 licences. However, I assume I can simply create a new MS account and create this?
Then I was informed that the MS Outlook that I install on desktops via O365 Family would not be able to make a MAPI connection to Exchange Online and I'd instead have to reduce security, use IMAP or POP and so might as well use any old email provider.

Ultimately what I am trying to achieve:

6 family members with access to Office 365 Family - all download Outlook onto their various machines
6 Exchange Online (P1) licenses linked to email addresses from my custom domain
Each of those 6 family members can use their installed version of Outlook to connect to the OE mailboxes without the need to reduce security etc.

It's been hinted the only way I can achieve all of this would be to buy 6x Business Standard licenses - which is completely impractical.

O365 Family - £60 / year. 6x OE1 licenses - £250 year = £310
6x Business Standard licenses - £871 / year
 
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