iphone 4s got reset - icloud backup did not restore info

Yesterday I was syncing my iphone 4s with itunes. It asked me a question ' Settings on your iphone has changed, do you want to apply these settings to your phone' when I jumed from the movies tab on the iphone screen to movies tab on the library.

I clicked on 'Dont apply changes' the screen got freezed and I was forced to disconnect the iphone and reconnect. When itunes opened I was astonished to see that my phone is not recognised by itunes and no information about my phone was displayed. There were no tabs at all and I could see only the summary tab.

All my apps and data is wiped out of the phone. The only option was to do a 'Restore' I had to click on 'Restore' and after which it downloaded the latest s/w and then installed it on the phone.

The phone restarted and itunes asked my apple id and then recognised the phone. It copied the backup from the computer though my iphone was backed up on icloud.

Though there were many apps only few were synced. The paid numbers app was not synced to my iphone. When I restored the backup from icloud no data or pictures were restored to my phone.

I would like to if anyone has faced this problem and any solution to it?

Apple need to answer why the phone got reset and itunes could not recognise it at all?

Why the backedup data from icloud was not restored to the phone?

What is the purpose of backing up to icloud when it cannot be restored?

Thanks in advance,

Guru