Like you, I use Outlook extensively, but I do not use an Exchange server. My experience after a few years is this:
Syncing via iTunes/USB worked/works great for Calendars, Contacts, and Notes. Plug your phone into you PC via USB, click the checkboxes in iTunes to indicate you want to sync those three things with Outlook, and everything just works. Great!
My brief experience with iCloud, however, was the exact opposite. The *only* reason I even tried it was to sync Tasks to Reminders (a long-missing feature on the iPhone). I had been using "2Do" for Tasks, and was very excited about Reminders until I realized that USB syncing is not supported.
As you stated, iCloud (without ever asking me) created a new Calendar and a new Task list - both named "iCloud" - and then duplicated everything. The really annoying part is that I only selected syncing of Reminders/Tasks in iCloud yet it still created a new Calendar. Why?
And to top it off, the iCloud Tasks group does not show up in your Tasks sidebar in Outlook, so it's not really a "sync" -- more of a parellel copy-to-Oulook operation. VERY disappointing.
The only good thing I could say was that uninstalling iCloud seemed to work OK, though I had to manually remove the new calendar and task group.
Good luck!