IPhone songs worked fine before Match

Question

So, I had about 575 songs downloaded to my iPhone that worked fine (only 16GB model, so I have to limit tracks).  I enabled Match this morning because I like the idea of seeing my entire library and being able to download songs on the fly without having to sync.  I left the house with Match and my iMac doing it's thing (the start up process).  Later in the afternoon, I enabled Match on my iPhone 4S.  My entire library shows, by 75% of the song titles are "greyed out" (can't touch them).  Worse, songs that are already downloaded to my iPhone are now greyed out (I know because I have a playlist I use daily for running and half of the songs in it are grey).  Here's the crazy part, I can play the song preceeding a grey song (that was previously stored on my device), forward the track and hear the greyed out song?!?!  I just can't choose if from a track list.  I disabled iTunes Match on my iPhone and went back to the Music app, and of course, my songs that are downloaded and used to be playable are not, unless I use the pick an available song and advance tracks trick.
So, long story short, my local iTunes library on my iPhone is now broken due to Match.  I've tried a few tricks I've read in the support communities short of restoring the phone (which I really don't want to do because this ALWAYS screws up my apps and folder arrangements) but nothing has worked.  I'm scared to get home and see what this thing has done to my source iTunes library on my iMac... fingers crossed that it hasn't destroyed it, or locked me out or some other nonsense.
Any ideas out there...  I like this Match concept, but it appears to be very, very broken.

Answer 1

My situation is improving a little.  When I returned home I found that my imac went to sleep during the match process (I would think that the process would keep the imac awake, but I recommend people with large libraries disable energy saving features while Match is working).  When it completed the process the second time I tried, a LOT of the greyed out tracks returned to my iOS devices.  The only ones missing right now are the ones pending upload to the cloud.  I have a few tracks that I've purchased and are on my iMac HDD that are greyed out, but that list is down to 10-15 out of 12,000... so I can work on those when Match is done.
I'm surprised that the iOS devices would restrict you from accessing sync'd content while Match is running - i.e. the content is already on the device.  However, it's error handling that must not currently exist in the service. 
My biggest take away right now is the lack of information Apple provided on this service.  I'm using third-party tutorials online instead of a simple "what is Match and how does it work" document from Apple...  Documentation is still a must, especially for new and potentially complicated services like this.  I.E. tell me that you are going to restrict my access to my own content during this process, and that this process may take 2-3 days (still uploading).