As an FYI iTunes Match in iCloud gives you the same access to your music as iTunes in iCloud, but for all your music not just iTunes store purchases.
By that I mean you actually download your music to your iOS device or Mac/PC. It is not
streaming. About the closest it comes to streaming is simultaneous listen and download.
So basically you can have all your music matched by iTunes Match and then download it all again if you want. It is not held captive in the cloud. While I am sure you won't have access to the songs in the cloud from iTunes Match if you let it expire, they don't have to give it "back" as you had it in the first place and they never "took" it. In fact you can download better quality versions of the songs it matched--and once downloaded you don't lose them if you cancel iTunes Match.
And it for sure analyses the tracks themselves. You don't even need any metadata. But if you download them--yep, you get all the metadata (assuming it was a song iTunes has available: if not you are actually uploading your own copy).
But as for this thread? Well... there is no iTunes Match streaming so yes we still need local storage.