Man, this is really going down a rat hole 🙂
This is text from Apple's website:
iTunes determines which songs in your collection are available in the iTunes Store. Any music with a match is automatically added to iCloud for you to listen to anytime, on any device. Since there are more than 20 million songs in the iTunes Store, chances are your music is already in iCloud. And for the few songs that aren’t, iTunes uploads what it can’t match (which is much faster than uploading your entire music library). Even better, all the music iTunes matches plays back from iCloud at 256-Kbps AAC DRM-free quality — even if your original copy was of lower quality.
Now, after I found that on the iTunes Match main page I did a little more digging on Apple.com and came up with this little gem, "certain quality criteria will not be matched or uploaded to iCloud." Although I can't find what that criteria actually is.
So, it appears you are correct. I have also found a work around to having to dig out my hundreds of CDs from storage which suggests converting the offending tracks into 256kbps AAC files and re-syncing with iCloud. I'm testing it now. I'll let you know.
Thanks for your insight into this. It's been very helpful!