In the U.S. we already have access to some of the iCloud features. I've been playing around with it for the last week. It definitely is NOT a streaming service (at least not yet) but is rather a service to synchronize libraries by allowing downloads to iDevices or registered computers with iTunes. From within iTunes, there is a screen that shows all music you have ever purchased on iTunes. You can tick off the "all songs" box or individual boxes. You can also filter it to only show music that is not showing up on the iTunes library on your computer. In using this, I found quite a few tracks/albums that I had lost many years ago in a hard drive failure between backups. I had forgotten all about those tracks! With one simple click, I was able to have iCloud download all of those lost tracks to my computer. Steve Jobs made no mention of musicmatch only permitting streaming. In fact, he made it pretty clear that iCloud is for downloading and not streaming. Time will tell, though.
As far as BeoSound 5 goes, I started by re-ripping a few dozen of my favorite albums in lossless quality. After that, I found my time priorities to go elsewhere and have been content with the existing lower quality music for casual MOTS listening. Sadly, most of my music was ripped at 128 kbps or less. I find the improvement to 256 kbps to be very noticeable. I find the improvement from 256 kbps to lossless to be quite marginal. In fact, many blind tests have shown that most people cannot discern the difference. While having a fully-lossless library would be ideal, considering the time involved to re-rip my library compared to using musicmatch (if it indeed works that way), I find the latter to be a satisfactory solution for me, personally. Certainly, there are audiophiles who would disagree.
I seem to recall a thread long ago where a BeoWorlder was making the argument that, even though it's still lossless, a 256 kbps music file purchased on iTunes is still superior to a 256 kbps music file ripped off of a cd -- because of the master source that was used.