I am also reporting the same behavior. I, like billybaloney, have an almost "topped-out" iTunes Match collection (I actually have to manage keeping the matched content under the Apple 25K limit, but that is a different matter). Whenever I open Music app on my phone - 4S, iOS 7.11 - I see my available storage go to nil, and I start getting the "Storage Almost Full" messages. Which, if you have received them, also puts a significant drag on the performance of the device.
I am fully aware of the download locally (device) of "played" content, so I expect the number of songs and albums I have played to be resident on the phone after, and that requiring manual cleanup. I can see this by taking the phone offline (airplane mode, or literally out of coverage), and then opening the Music app and seeing only what is truly on the device.
I suspect that the "eater of free space" in the iTunes Match arena, for users with a large library of iCloud selections, is as simple as the iTunes library info to render for selection (not the music, but the artist, album, song and playlist lists, and the album artwork). Resetting your phone is a PITA for workaround. Something needs to be done, but I have a feeling nothing will. Or it will require an iOS update to a newer version that my devices won't be eligible to load.
Any insight or help would be great. Workarounds are only that: work arounds. Solution is what is needed.