I have tried it and I can confirm that it does indeed work for me.
Now I can really leverage this online space.
As an addition, because you can now map this as a drive you should also be able to use the new 2.1 version of SyncToy to keep folders online. N.B. I haven’t had a go at this yet as I am downloading and installing the new, and supposedly much better 2.1 version of SyncToy.
My remaining question is how does this all fit into the Mesh strategy? Seems like multiple teams in Microsoft are working in parallel again!