So I finally took to plunge and I am in the World of Office 365/Azure.
I setup the Azure Directory Sync tool and the sync worked. After the sync I found a lot of objects that I do not need in Azure so I tried to apply the OU filtering using miisclient.exe to partition the and filter only the containers of interest. No matter what the system seems to re-populate the accounts after I remove them from Office 365 Portal. Not I am also forcing a sync using Powershell command Start-OnlineCoexistenceSyn