I've made several attempts to contact tech support, but still have not gotten an actual answer as to what would cause this. They keep suggesting that I may have purchased the music under a different account. As I only have one account, this is not the reason. I'm trying very hard to get a phone number to call, but what can you expect when the service is "free".
The music I purchased is in my library. However, I don't have an iPad so I can't comment on the issue of downloading.
Ok, I've been having the same concern but I think I have something figured out. If you have purchased an ENTIRE album, the album will look normal and you won't see "purchased" anywhere (this is only for iTunes 11 on Mac or PC, it apprently still works normally on iOS). However, should you click to buy an individual song on the album, or try to buy the entire album, you will get a warning that you've already purchased it and it will give you the option to download it again for free.
If you've purchased some songs but not all from an album, you will still see the "Purchased" and "Complete My Album" options. That's why some of my music appeared to have the ghost text and others didn't.
So again, if you've purchased an entire album, you won't see "Purchased" anywhere. Appartenly that is now reserved as a complete my album feature only now.
Also, just in case someone may not know this, if you go to the home page of iTunes, on the right there is a link under the heading "Quick Links" titled "Purchased" and it will take you to a page that will allow you to browse through all of your purchased music and click on the little cloud icon to download it again. There's also a purchased tab on iOS devices that does the same thing. Hope this helps!
My problem is that my purchased songs are not showing up when I look at the albums in the iTunes store and also not showing up in my Purchased tab. When I open my purchased tab, tv shows, apps and books show my purcahsed item but nothing shows in the music section. I have purchased approximately 900 songs which do appear on my local pc in Itunes as purchased but I would like to know why they don't appear anywhere on the iTunes store as purchased.
Am going to open a support request. Will see what happens with that.