KiwiLouisa - I had the same problem. I was eventually able to distribute my content that was "Not eligible for iCloud" to my iPhone by switching off ITunes Match in both the ITunes app/machine that hosts my library (my Macbook Pro, in this case) as well as on the device to which I wished to distribute my content (my iPhone 6+). This opened up the option for my device iTunes Music settings for selecting "Entire Music Library".
After I successfully transferred *ALL* my music and music videos via iTunes sync, I then again switched on ITunes Match in iTunes on my Macbook and on my iPhone.
This does not change the iCloud status, but at least I have the content on my iPhone.