If I have all the pics I had in the online gallery of mobile me still have in my iPhoto, there is no need for me to download all the folders, right?

I am very confused about this iCloud thing. Where do I put my pics now for family and friends to see online???

Welcome to the Apple Community.
If you already have them in iPhoto, then there is no need to download them.
Unfortunately, iCloud does not offer equivalents to Mobile Me’s iDisk, Gallery or Web Hosting services. You will need to find a third party solution to replace these services. You might consider DropBox, SugarSync, MediaFire or any other service that offers online storage. (not all these alternatives offer all the services previously provided by iDisk)

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