As confirmed in official support documents posted yesterday by both Microsoft and Apple, updating to iOS 11.0.1 or later fixes this annoying problem.
iOS 11.0 users whose accounts are hosted by Microsoft on Outlook.com or Office 365 or an Exchange Server 2016 running on Windows Server 2016 were seeing an error message when trying to send an email, saying “Cannot Send Mail. The message was rejected by the server.â€