The screen with the cloud indicates that match is processing your match data. A progress bar appear and with a small library of 1000 tracks, the process should be quick.
If the update is failing to complete, try signing out of match and then sign out of iTunes Store. Reboot ipad then sign back into store and turn on match. Open music app and the screen will show the large cloud symbol. Be patient and let imatch update.
Ps do you have a good wifi connection?
I should clarify: 1000s, not 1000. I think iMatch said I had 12997 available for download in iTunes.
Ran through the steps as you suggested and it did show the same screen for a while. Then it defaulted to the "playlist" tab with no playlists listed. I'd love to be patient and let it update but it doesn't seem to want to. It sits on the large cloud symbol for about a minute while the progress bar doesn't move and then just seems to "give up" and go to the playlist tab.
(yes, I know. no cell service. I'm at work)
Wifi is good. I thought it might be my home network causing problems so I moved to work to give it a shot.
So I gave up on trying to fix this the hard way, hooked my iphone up to my macbook and hit "Restore" in itunes. Wiped my apps and data so I'll be spending the evening reloading everything, but the music is back. I'm guessing a corrupt library file somewhere that just got cleared out but the restore.