Im not familiar with Electrum and not happy about having the walet store the coins outside of Trezor even if you supposedly can't get to the keys without the Trezor hooked up.
You are not storing anything outside your Trezor. Your private keys are not supposed to leave your device. Electrum and any other compatible altcoin wallet act only as an interface which knows how to communicate with your hardware wallet. There is no risk as long as you verify what's being displayed on your Trezor's screen and you don't enter your recovery seed anywhere.
I still thinking that having to have a 2-step process of managing an Electrum and Trezor together seems more complicated than just doing it on the Trezor directly.
You don't have to use both at the same time. There quite a few people here who use their hardware wallets only with Electrum since it supports many advanced features.
Will Trezor be fixing this in upcoming hardware and if so, do I have to buy another Trezor to get that to work when the finally get it working?
There is no reason why new hardware would be needed. It is purely a software limitation. Trezor developers are busy making
Trezor Suite more usable, so I wouldn't expect them to add a native support for the specific altcoin you use. Every piece of software used by Trezor is open-source, so the community is free to contribute as well. Also, if they supported every single altcoin natively, they would need to have a solid backend which is costly.