If I update itunes to 10.5, will purchased tunes not in istore be lost

I am about to update to iTunes 10.5, but read that purchased tracks which are not in iStore will not be available.  Does this mean I lose them, or will they still be stored locally?

Yes, I do have backup - Time Machine used on a regular basis, and a couple of bootable clones alternating, so that is not a worry. 
Just that reading the stuff that comes with the update to 10.5 on i-Tunes it seems to to suggest all my music etc. will be moved to the cloud, but stuff that I purchased from i-Store, but no longer listed there will not be available.  So I am a tad concerned that stuff I have bought may be lost to me. 
I find myself these days fairly cynical about how tech companies want to cream me of money for every little normal activity, so am distrustful about whether it is worth the hassle to upgrade i-Tunes.  Especially as I have little use for the added freedom of cloud based data. 
I'm not a techno-twerp, but if the upgrade moves all my music to the cloud (with possible loss of ones they no longer sell) then I don't want it.  If on the other hand the upgrade simply puts a (virtual) copy of my stuff in the cloud, but leaves them all still on my local drive, so I can still use them - that's fine. 
Maybe the problem is the way I understand the info, or maybe, just maybe, Apple are either badly describing what happens with upgrade, or planning to take yet more money off me for what I have already bought? 
Thank you for helping me to sort this out!

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