Kyrgios was feted like a rockstar at the exhibition tournament in Melbourne on Tuesday when he beat Chinese veteran Zhizhen Zhang in a super tiebreaker 6-3 4-6 (11-9).
The 30-year-old made the call last week to rule himself out of a wildcard for the Open, which gets underway on Sunday, saying he wasn't up to five-set tennis.
Multiple wrist and knee surgeries have limited Kyrgios to just seven singles tour matches over the past three years, with his ranking plummeting to 670.
Kyrgios "absolutely" stood by his decision to make way for Swiss former champion Stan Wawrinka and Australians Jordan Thompson and Chris O'Connell to take the remaining wildcards.
"Someone like Stan, who's played three or four competitive matches in the United Cup, all at a super high level, there's absolutely no doubt in my mind that he deserves it," Kyrgios said.
"And it just wouldn't be fair like of me to have so many doubts physically to go out there and play some of the best players in the world in the best of five and not even sure that I could back up one round, like it's just not fair.
"So I mean I think Stan completely deserves a wild card and obviously some of the other Aussies as well and I'm going look at still playing doubles and hopefully a bit of mixed as well - just to be a part of it is special."
Kyrgios said his inability to play at the standard that saw him challenge - and beat - the best in the world was "heart-breaking" given his popularity with young fans.
"In some sense it's amazing and in the other sense it's a bit heart-breaking cause I know that I'm not really able to go out there and do what I used to do," he said of the screaming youngsters.
"It's amazing to have all of these young kids and fans coming out here and I guess it's still a big part of why I still come out here and trying to put on a show.
"The atmosphere out here was nuts ... and if I didn't have this I don't know what else I'd do.
"I've got a lot of other things going on off the court but there's no feeling like this."
Kyrgios could make his return to grand slam tennis at Wimbledon, where he reached the final in 2022, and said he won't be seen at the French Open, where he hasn't played since 2017.
While he's no fan of clay he was set to play doubles at Roland Garros last year with Jordan Thompson before a knee injury forced his withdrawal.
He said the grass courts of Wimbledon was the likely aim.
"I think if I'm still able to produce a bit of level like that (his Kooyong Classic match), I think Wimbledon's a bit easier physically.
"I think possibly if I'm able to just put a couple good months together training-wise and we'll see."
The Canberra product wasn't sure which ATP Tour tournament he would target next and would re-evaluate after the Open.
His immediate goal was winning the $1 million on offer on Wednesday night in the "One Point Slam", with Tennis Australia upping the prize-money for the contest that will feature both amateur and professional players.
"As of right now I've got that One Point Slam tomorrow that I'm going to try and lock in for and go out there."
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