ADVICE ON CLOUD PLAN

Hi
Last year I purchased the extra 20 GB cloud and it is up for renewal on Tuesday.  I have a MacBook Pro and an iPod touch.  I use itunes match for my music.  Other than syncing iCal and using cloud to have music on all devices I don't use it much.  I have 18.3GB of used storage, 18.2 is camera roll but I don't share or stream it other than from my ipod to apple TV.  I am happy to lose most of the camera roll and keep it on my iPod (64GB).  What benefit do I have for keeping the storage if any and what happens if I drop capacity, I have not deleted the photos from my iPod so would they still be there?  I don't want to mess up my music and video in Match itunes in the cloud.
Thank you,
Jules

iTunes Match and Photostream do not use any of your free/paid for iCloud storage. The two main uses for this type of storage are for back ups or for syncing documents because as you say Mail, contacts, calendars etc, don't use all that much space at all.
I Find that document syncing is best used for working documents rather than the storage of historic documents (which are best stored on-line using something like DropBox), so unless you have a huge amout of working documents you will probably find that 5 GB is more than enough.
If you back up one device using iCloud, you may or may not need more than 5 GB, if you back up two or more, you probably will need more, however Being able to back up to the cloud can be very useful, especially if you don't have access to a computer or have infrequent access to one, however unless you specifically need to use iCloud for back up, you will find backing up to iTunes significantly more convenient and possibly more reliable.
I use around 1 GB of my 5 GB.

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