This feature request is still on the backlog. No new information to share at this time.
This feature request is working its way through the backlog queue. No new details are available yet.
As Jeff West, Laura and many others commented below, Teams should EXTEND an existing Site in a Site Collection, not create a whole new one.
This should not be marked complete. This is not what the suggestion is.
You should be able to pick an existing SharePoint Site to extend "Team" Functionality around. Right now a NEW Sharepoint SiteCOLLECTION is created for each Team. It would be way more useful to let the admin pick which Site (in an existing site collection) to extend with "Team" functionality.
Yes, it would be fantastic to have Team Site be associate with a SharePoint Site, not a SharePoint Site Collection.
We know you are patiently waiting for this feature. This feature is being implemented in stages. Fast tenant switching is currently in testing both internally and with early customers. We expect to release to the public in the Fall. I’ll post an update once it’s rolling out.
Full multi-tenant, multi-user support will be added after fast tenant switching.