Not a defence, or a condemnation of iCloud, just sharing some insights on this confusing issue. It doesn't solve any problems, but hopefully illuminates them somwhat...
I wonder how long before they do this with music that may no longer be in the iTunes store?
That is already how it works with music. Only tracks currently available for sale are matched. All other tracks are uploaded.
Music videos, never had the upload option, just the match option, so they have to be currently available for sale to be matched. There are many problems with correctly matching music files. Are the music video file matching issues different from those? Don't know, but it seems to be a very similiar technical issue.
iCloud, iTunes Match and iTunes in the Cloud are separate and very different services. Apple is doing a dismal job making those differences clear. Even their own employees and literature often use these terms interchangably, making it even more confusing.
Music videos were never part of iTunes Match (i.e., the syncing-on-the-go and semi-streaming service). Music videos are part of the iTunes in the Cloud service, which is designed to allow downloading of previously-purchased content to all devices. (If AppleTV, based on the reports here, works differently, that just adds to the confusion.) In any case, there's no excuse for Apple to have a system which does not provide for storing music videos in iTunes Match AND at the same time does not allow simply syncing that content via desktop iTunes without having to turn iTunes Match off first. Even for a version 1.0 product, that's a pretty basic omission.
Despite the cinicism pervading this discussion (not entirely suprising), Apple staked its future on iCloud. Personally, I have no doubt that they are working feverishly to iron out the kinks, improve functionality and add features. They have too much at stake here, not to.
Rysz
From http://www.macworld.com/article/163658/2011/11/itunes_match_what_you_need_to_kno w.html
"What kinds of content can iTunes Match upload or match?
You can match or upload any music format that’s compatible with iTunes. That includes AAC, Protected (DRM) AAC (.m4p), MP3, WAV, AIFF, Apple Lossless, and more. You can also re-download music videos from the iTunes Store that you originally purchased, but the service will not match video content, nor any other iTunes file types (PDF booklets, Voice Memos)."