Think about this logically.
Lets say you have an iPhone 16GB.
Your Mac's music library is 20GB of music. Your iPhone already has 14GB worth of video,apps and documents on it.
How are you going to be able to play any music on your iPhone if there isn't enough storage on it ?
A+B=C
Are you implying that the iCloud user will be able to stream their 20GB of music? I didn't think streaming was part of iCloud, only downloading to sync.
Regardless, I was applying logic to my situation. All songs and apps easily fit on my iPhone. However, others have stated that it makes it easier to keep music in both places at once. Not really having to worry about buying then transferring. So I guess I can get on board for the convenience factor.
quote from earlier macrumors article:
"Using the new Automatic Downloads feature, content purchased via iTunes is pushed (not streamed) to mobile devices and vice versa. "
So i don't think its going to save you any room on your device since you can't stream. But it will make syncing automatic. Im not covering the fact that you can download an individual song from iCloud if you want to listen to it as that isn't really very convenient and isn't a solution i'd be interested in.
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