I am with John Twohig on this one. The retention hold is a great tool but it requires quite a bit of knowledge to setup correctly and to be able to find and restore content.
One of the many strong points of the many 3rd-party backup solution out there is the ease of use. Many organization that we work with do not have an in-house Office 365 admin / expert (it really doesn't make sense for an organization with a dozens or even a few hundreds employees) with deep knowledge of the platform. Having access to an interface where backups are easily configured and files restored when needed if a major selling point.
I am really interested in seeing Microsoft integration more backup / recovery options into Office 365 but I am not yet ready to say it is an all inclusive solution.