I completely agree, this module needs an update.
I'm also curious if the update is on their road map. Please Outsystems, enlighten us.

Possibly merge it with LifeTime? Could be better as there will be one central place to manage users, roles, and permissions for applications.

I don't think merging with LifeTime is such a good idea, By some companies application users are being managed by someone from the business as it requires some sort of auditing and synchronization with HR Directory. 

I really see LifeTime as a nice environment for Support Engineers and or Release managers only. 

I Totally agree with you Robin