iCloud and Address Book
I have had similar problems but also what at first seemed a major catastrophe. It seems that there is no way to overwrite iCloud contacts completely.
Since IOS 5.0 & 10.7.2 for the first time I had no problems syncing my address book. Everything worked well for my iMac, MacBook, iPad and iPhone. It hadn't since Lion was released and 10.7.2 has been long awaited. All worked well until the other day I changed the backup setting in iTunes for my iPad to tell it to backup to the iMac. Two days ago I noticed that some of my contacts were not duplicated, none were that, but triplicated and quadruplicated. Not all. Further in some the entries were triplicated etc. but not necessarily the same ones where the contacts themselves had been triplicated. I could find no logical reason for this to suddenly happen.
I knew I had a clean backup from the day before and rather than spend hours putting right all these entries (600 +) deleted the content of address book on my iMac and reinstalled the backup.
It looked fine but the "look" lasted all of 30 seconds and the whole of the address book emptied itself. I realised that I was still connected to iCloud, it had picked the first cleaning of the address book and decided that it did not want the version I put into the iMac even though it was an Apple archive. I then found it had wiped my MacBook, iPhone and iPad. Gone.
I tried several times to put it back but it seemed there is a block on you overwriting the data in iCloud's copy of contacts. You can edit, add and delete individual contacts but not do a complete overwrite.
I tried dropping my archived copy of address book into contacts on iCloud but it rejected it, said it needed a vCal file.
I then did the following:
1. Ensured the iMac was not connected or syncing with iCloud. Do that via settings.
2. Emptied my address book on the iMac.
3. Restored in the iMac from backup archive.
4. Then exported the whole of the address book as a vCal file - export in address book gives you the option.
5. Then reconnected to iCloud and despite address book on the iMac being more recent than iCloud knew, iCloud of course wiped it completely.
6. I accessed my empty contacts on iCloud itself, dragged and dropped the vCal archive into, all was accepted and everything put right.
I was fortunate I had a recent backup.
Something is wrong though or I have missed the "how to" as it seems you cannot overwrite the address book in iCloud from your iMac etc. as you could in MobileMe.
If therefore you want to tidy up take care, iCloud can wipe everything.