IMatch frees up storage on my units correct, if has not what havve i done wrong?

Hey johnfromrapid city,

Thanks for using Apple Support Communities.

This article explains about using iTunes Match on your iPhone.

iTunes Match on iPhone, iPad, or iPod touch

http://support.apple.com/kb/HT5637

Deleting songs downloaded to your device

You can delete a song or album from your iPhone, iPad, or iPod touch at any time. Don't worry; it'll still be in the cloud.

1. Tap the Music app.
2. Tap More > Songs at the bottom.
3. Scroll or search for the song you would like to delete from your device.
4. Swipe right to left on the song, and then tap Delete.

Have a nice day,

Mario