Found a solution. Just am stumbling on this problem myself. What the heck is Apple thinking? I have
a 32GB iPhone. I don't want to download 32GB from the iCloud....I want to just use my USB cable.
from the site: http://www.macworld.com/article/163607/2011/11/toggle_between_itunes_match_and_l ocal_syncing.html
"Fortunately, there's a workaround, which leverages the fact that enabling iTunes Match does notactually wipe out your iOS device’s library. The trick? Disable iTunes Match on your iOS device first, under Settings -> Music. Now sync the tracks you want on your device. Then turn iTunes Match back on.
The good part is that any songs you’ve already downloaded to your device from iCloud stay there even after you disable iTunes Match, and they’ll still be there when you reenable it, too. In other words, you can use this trick to sync tracks from your iTunes library as often as you’d like, without adversely affecting your iTunes Match setup at all. The only thing you’ll lose is the few seconds it takes your iOS device to re-download all your playlists and song metadata when you turn on iTunes Match again.
There is one big caveat to this approach: It will only work for songs that exist in your iTunes Match library. That is, if you turn off iTunes Match and then sync a few random tracks that aren’t part of your master library, those songs will vanish after you turn iTunes Match back on. So while it's a useful trick for preloading your iOS music library with songs so that you won't need to re-download them from iTunes Match, it won't work for expanding your library to include songs that you're not matching with the service."
The warning message that it will replace your library isn't totally true - it will keep what you have on your phone.
Message was edited by: eazyd
