Apple didn't make it crystal clear but their new iTunes in the Cloud and iTunes Match services IS NOT, IS NOT, IS NOT a streaming service. It is a DOWNLOAD service. Basically you can download any song you have ever purchased for free, forever or any song you have on your computer (ripped, bought elsewhere, or stolen) as long as you have a current iTunes Match subscription.
The DOWNLOAD is the real deal, non-DRM, works forever version from Apple and does not require an internet connection after the download. The idea here is you are on your iPhone and you want to hear some music you didn't copy over from your computer, if you bought it or have it via iTunes Match you DOWNLOAD the songs and listen to them as much as you want forever. If your memory starts to fill up just delete them directly on the iPhone (new feature) to make room as you can always download them again in the future.
