We are porting this feature to the Security & Compliance Center. This functionality will be available before the Exchange Admin Center In-Place eDiscovery and Hold functionality is disabled. Documentation will be available here: https://aka.ms/ediscovery.
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We have requested updates from the Skype team, but you'll want to send that team feedback through their feedback & support channels. Skype does not monitor this forum.
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We are working on customizable limits, but we have no ETA at this time. Thank you for the feedback.
Correct, DLs count as single recipients. There are certainly separate limits and throttles for DLs, but that seems to be out of scope here.
@ScottMoore - the 500 recipient limit only applies to hosted mailboxes. It does not apply to applications unless they also happen to authenticate and use a mailbox.