Maybe I didn't explain myself very well. Before iTunes Match, I would RIP my CDs and import them into iTunes. iTunes would then play my stored music from my local HD.
Now that my music is in the 'cloud', I could free up some disk space by deleting those local music files. That shouldn't affect the way iTunes now plays my music, cause it's getting the music from the cloud, right?
My backups are my original CDs that I puchased. Sure you could argue that CDs won't last forever, but neither will I.
Why can't I use iTunes match as a backup? Will Apple lose my files or the data that tells iTunes it keeps as a record of ownership? Not that I don't trust Apple with my data, I don't trust anyone with my data.
If I had purchased music from iTunes, it's normal for me to want to save it somewhere.
I'm going to assume I can delete my local music files and iTunes will play my music as it should. The other question is, how should I delete those files? Should I locate them using Finder and delete, or should they be deleted using iTunes?
I hope that clears things up.
~paul