Playlists disappear on iPhone when using iCloud

Help! My playlists disappear when connected to iCloud. This just started about 2 days ago.
First the basics:
On the Mac:
iTunes 10.5.1 (42)
"Your software is up to date" according to Software Update
iCloud is ON
Music and playlists are still on the Mac
On the Phone:
iPhone 4GS 64 GB
iOS 5.0.1
"Your software is up to date" according to General > Software Update on the iPhone
Settings > Music > iTunes Match is ON
Settings > Music > Show All Music is ON
Settings > iCloud > Account is Logged IN
Playlists DO show up when connected VIA USB and in Music > More > Shared (only comes up when connected via USB) -- The playlists will sync to the phone when Shared > My Library is checked.
I haven't lost any music but this makes it impossible to use my iPhone for playing playlists in the car since once the device is disconnected from USB it is disconnected from Home Sharing and the playlists disappear.
I've tried deleting and readding the content to a playlist and that does not help. I have tried to create new playlists and they will not show up on the iPhone. I have synced the phone without the USB cable (over WiFi) and that copied some art files over but there was no change in the playlist.
Anyone have anything similar happen? Any other ideas? I tried a search and nothing relevant came up.
Thanks for any help!

I was able to fix my issue, for now, by
- Making sure the playlists were still in iTunes and set as I wanted
- Backing up the iPhone VIA USB to iTunes
- Doing a restore of the iPhone from the backup I just made in iTunes
However, now I have to go and grab "from the cloud" all the songs that were removed from the phone backup.
At least for now I am back up.

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