Are we forced to data streams in 8.0?

I'm researching what we need to do to get off legacy templates. For example, we have several indices like filebeat-7.14.0-index-a, filebeat-7.14.0-index-b, etc. They are different apps and different access rules. Now we let multiple legacy templates merge in priority order to create the desired index settings, filebeat-7.14.0 would merge with a lower priority, then custom settings for each as needed including ILM, different retention rules apply.

I tried using setup.template.type: component to use compostable indices and get this warning:

DEPRECATED: do not use setup.template.type, it is deprecated, data streams will be loaded automatically Will be removed in version: 8.0.0

The default creates an index template, I wanted a component template that I could include in other index templates. My first idea is shot down in flames and I can't find any explanation. I read that data streams create hidden indices, but I still need to search on each individual index or application, never across all of them. This seems impossible in data streams.

I'm testing in 7.16.2.

Thanks

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