Thanks to all for the clarifications. Now I don't feel like such an idiot! My first Apple product was a IIC, so it's not like I'm a newbie, and even though I can't write program, etc., I'm a good problem solver and trouble-shoot for my extended family. But this new ios5/iCloud situation has really had me stumped. I hardly use my Macbook since I got my iPad1, so it's important to me to keep my ios devices working smoothly.
When I first downloaded the update, I tried using iCloud. My contacts and calendar disappeared from all devices. So I turned iCloud off and then had to restore everything from my Macbook. I'm pretty compulsive about backups and had backed everything up to an external drive before I started the update. Still, it was a challenge to figure out how to get everything back on track.
So the I tried creaing a new Apple ID, thinking maybe I had somehow caused the problem. Same stuff happened. At that point I decided to abandon iCloud until the bugs get worked out, and after reading threads like this I'm glad I did.
I am reluctant to update to Lion in any case as Quicken isn't compatible, and so far I haven't found a satisfactory replacement.
Currently I have my system set up to sync all my ios devices with my Macbook via wi-fi, which is working just fine. Since I'm retired I don't really need anything complicated. But I do enjoy keeping up with the latest - keeps my brain sharp!
Again, thanks for the help. I will continue to follow this and other similar threads so that maybe, when and if the bugs get worked out, I look forward to trying out iCloud again.