That's still not right.
Look, as I wrote in my original reply, the location of the default iTunes Library is not changed to the cloud when iTunes Match is enabled. So the only way music played in iTunes will stream is if there is no local copy. Does that make sense?
Try this: Quit iTunes. While holding down the Option key launch iTunes and click "new library." Enable iTunes Match on this library. Let it do it's thing. Now, you can play this music and it will be streaming. To switch back to the main library quit iTunes and re-launch it while holding down the Option key. Play the same song from the library. This is not streaming; it is playing the local copy. See?