iTunes Match still functions the same way for me and I've been using since early 2009.
Select a track, right mouse click. In the menu, the top item will be "Remove Download." That's the one to delete your local file. When you reselect and bring up the same menu, you'll have the option to download.
It is easy to see the iCloud status of the music library files if you move the iCloud column close to the track title column.
Completely deleting the file is a separate menu item, safely placed at the bottom of the same menu "Delete from Library" so you cannot accidentally delete it by an errant mouse click. Note that you will be prompted to confirm full deletion.
Note: I am using iTunes 12.9.5.5 on a Mac mini 2018 running Mojave. I did this yesterday after I purchased the Hollow Knight soundtrack from Steam, transcoded the FLACs to AAC and uploaded to my iTunes Match/iCloud Library. The tracks matched so I deleted the local files and downloaded the higher-quality iTunes tracks.