iCloud songs now show up in my library :-/. So now if I downloaded a single and then went and bought the actual CD/burned a friends and deleted the iTunes version, I have 2 copies and they both play one right after another. Annoying. Also, crappy songs I got from free promotion code that I deleted are now back on my iTunes... great...
Under "View" you can select the option to hide purchases on iCloud...You should take a look around the settings before getting too upset..