I joined iTunes Match on my MBP and added our MBA to the same Match account. What should the iTunes Media Folder Location be for iTunes on the MBA?

Question

The iTunes libraries on both machines appear to be in sync, though I don't know if Home Sharing or iTunes Match is to thank for the consistency. But the iTunes Media Folder locations are different on the MBP and MBA, and I don't know if they should point to the same storage location (it's been on a drive connected to our Airport for years). I also don't know what options for Copying Files and Keeping iTunes Organized should be on the MBA. I certainly don't want the media files duplicated yet the devices sharing a cloud version.
I hoped the MBA would act like an iOS device using iTunes Match in that music would stream unless downloaded. Then downloaded music would have to be managed (deleted from the MBA's iTunes) for space reasons at some regular intervals-- just like we now do on the iPhones and iPad. The library entry for the song would remain... just the locally stored file would be deleted and the iCloud download would change back to the download symbol.
But if a purchase is made from the iTunes store on the MBA, the file is stored on the local MBA machine as well as the external drive because the MBP receives the song via Home Sharing and downloads the file.

Answer 1

Each iTunes client will expect a discrete iTunes library location.  The iTunes Match service will allow the libraries to be automatically synchronised along with any IOS devices that are also registered for iTunes Match.
Following making a secure backup for any given library it is possible, once Songs have been 'matched' or 'uploaded' to remove the local copies and play the Songs from the Cloud.  The behaviour on IOS devices is different, they will download each Song as it is played.
Note:  Apple is very clear that the responsibility for maintaining music files remains with the user - so it remains essential to ensure that you have your own Songs secure backed up prior to relying on the Cloud.  Should there be an issue with the Cloud resulting in loss of Songs you will need your own secure backup.