FWIW, here's what my thoughts:
- As mentioned above, you can stream iTunes to any device that has Airplay (AppleTV, certain AV receivers, etc)
- My only need for the old classic iPod was to use on the treadmill
- I created a playlist and added about a couple dozen songs
- Then I downloaded those songs from iCloud, it didn't take but a few seconds
- Then I synched the iPod, songs loaded
- Then I deleted those couple dozen songs, putting them back in iCloud
In order for the music to got to the iPod you need to click on the cloud next to the track and download it to the computer. Then you can plug in the iPod and sync it. I think you need to have "Manually Manage Music" checked and drag and drop tracks, albums and playlists onto the iPod. Or you can go into our account in the iTunes store and download all your music back down at once.