I am building a Xamarin app that will need to have users authenticated and each user will have a role. Would Azure AD OAuth 2.0 be a good solution for this scenario? Each person that downloads my app would register which would create an Azure AD user? At first I thought Azure AD was strictly for managing users within an organizations and not a way to authorize thousands of users of an app. Would I be able to seamlessly integrate Azure OAuth into my app without having to leave my app (like I would need to do with Google or Facebook OAuth)? Thanks for any clarification that would help me better understand!!
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The Xamarin experience can leverage ADAL / MSAL PCL libraries for authentication (in Alpha right now) - available on nuget. You need to look at the new Azure AD Business to Consumer (B2C) offering (in preview right now).
Note that the OAuth experience this provides leverages WebViews inside of your app to perform user authentication so it doesn't differ from what you wish to avoid.
While you could theoretically change that behaviour by custom coding a solution it's probably worth considering the benefits of handing off authentication and only having to deal with the resulting tokens.