Does Cloud or local version play when conencted to the Internet?

I am considering subscribing to Match and wonder how it deals with music I have ripped from a CD at a bit rate of 128 in former day when local device storage was more of an issue. If I am connected to the net will the song play from the cloud at 256 even though there is a local copy on the device? Do the satus icons show me which matched songs actually have higher quality copies in the cloud that I could download for improved playback quality when offline? In other words, can Match help me systematically improve the quality of my local music collection?
Herb

when you turn itunes match on a device (iphone, ipad, ipod touch) it cannot have any music synced to it so the song u would be playing would be streaming or downloading would come from the cloud, on your computer your local version will play, you can however delete your original and it will grey out and leave a cloud icon allowing you to download the matched version or re download your uploaded one, so u can upgrade your library, but be wary sometimes an album wont be fully matched like 12/15 tracks matched even though they are all in the itunes store, so that may be an issue, also listen to the track before you replace it, i made the mistake of replacing a bulk of my music before i did and i ended up with clean/different versions of my songs and my original was gone

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