right I see what you mean. I have now copied the photos off my iphoto stream... put it in a folder.. now they key is to find a free way to transfer these photos by bulk onto camera roll... there are some apps out there but my freaking itunes isnt liking my credit card at the moment so I am figuring out a way to do it.From my understanding, when you activate Photostream on a new device, it will only sync photos from that moment forward on THAT device. So if you have another iOS device with older photos that the device you just activated, they will not sync. However, all photos that you take on either device from that point forward will sync to both devices. I hope that makes sense.
I noticed this when I bought my iPhone 5. I have an iPad with a couple hundred photos in Photo Stream and they wouldn't sync over to my new iPhone. But any new photos I took on either device were syncing to Photostream on both devices. Then I read that this was by design since Photostream is not a backup.