Query-based albums based upon user defined criteria, please...
Just like the smart play lists in iTunes. They are great.
Which criteria? Just tags and star ratings will do for me, but you may add filenames, dates, mediatype, geotags etc. Just like WPG indeed...

Dynamically updated would be perfect but I can imagine performance issues. So manual refresh will do too.

Actually, imho it's the only way to have a full photo library and making real use of it by happily viewing subsets of the nicest ones in particular events and categories.

The current bad alternatives are:
- make duplicate uploads by selecting the subsets in WPG or Windows Explorer.
- select the best pictures one by one again from OneDrive and add to albums, which is crazy if you have thousands of pics with the ratings already there