it is
HIGHLY recommended you delete all music on your iPhone before turning on tunes match. when itunes match says this will replace your music library don't trust it
fix your library and then turn itunes match back on and try to keep updating it until it is fixed before you delete anything
itunes match is not supposed to allow syncing. if you have itunes match enabled you can't sync itunes music to it
any music you stream from your iCloud match music library is permanently saved to your iPhone. and does not get deleted.
those songs need to be deleted from your main itunes library if they do not belong there.
that is how syncing works. anything in iTunes gets put on your phone. if your itunes library is messed up your iPhone library will be messed up
putting music from the iPhone to the itunes library requires the music to be PURCHASED and you to click " Transfer purchases "
you can delete all the music you want on your iPhone and delete all the music playlists you want on the iPhone, it will not fix your itunes library because syncing is ONE WAY ONLY
im not sure if i helped you. I'm not exactly sure what your problem is or how to solve it. please write back if you have more questions.
have you tried dragging all the contents from the itunes library folder to an external hard disk, then deleting the whole itunes library,and then readding it?
maybe rebuild the iTunes database??
http://support.apple.com/en-us/HT201561
have you tried "organizing the library" and clicking on "consolidate"??
call apple. you get free phone support for anything itunes or itunes match , you don't need applecare or anything under warranty to ask them for help. they will solve your problems
if i am wrong and they want a serial # off your iPhone tell them you want an exemption because you recently installed iOS 8 . that is like the mothership coupon of free limited phone support