Yes, I’m actually seeing the same thing. 
But I think a key part of the puzzle I was missing versus what I was expecting was to also mark their account as ‘inactive’:
This would then remove them from the user directory, even without searching (as soon as the background job runs. Every hour for the daily view, once a day for the other older ones)
And this is also what gives the simplified user card I was thinking of:
And because they’re also suspended they can’t log in to reactivate their account.
Would this work for you?