Problems with iOS 6.1 iTunes Match

As an iTunes Match subscriber, I have enjoyed the ability to stream my music library from the cloud instead of having to download it to my iPhone. However, with the latest update (iOS 6.1) it appears it no longer works the same way. Instead, it appears as though I have to download my music. After I updated to 6.1, I went into my Music app and noticed that I now had the option to download individual tracks or whole albums--which is fine. It's nice to have that option back. However whereas I used to be able to select an album or track (even if it wasn't already downloaded) and 'stream' it without having to download it, I no longer had that option and all my music was grayed out. What's worse, upon discovering this, I went into Settings>Music and toggled off the 'iTunes Match' and 'Show All Music' options and then toggled them back on, thinking I just had to 're-set' my options. NOT SO! Now when I go back into my Music app, none of my music shows up!!!
So, is anyone else having this problem? If so, have you been able to find a solution?

Warning... Long and Thorough. 
I've had iTunes Match for about a year, and I hate how I can't listen to anything but B sides on my iPhone, basically the music that *****, which really ****** me off. I have a commute that is more than an hour each way. If a song matches on iTunes, it greys on iPhone and I can no longer play it, except on my PC iTunes. The songs that don't match on iTunes, are basically the b side types that noone cares about, and that's all that's left. So I'll cue up a hot track to get me pumped up for work, and iPhone will display the track title briefly, then skip to a song it can play. So instead of the hot radio hits I want to hear I am forced to listen to celtic music, classic, or opera. It f'n *****. I hate iTunes Match. It does NOT do what it promised. I can't believe I paid Apple to f*** up my iPhone music library. I have a frigging 32GB phone with nothing but crap music on it. Music is my life, it gets me going. Only swear words can properly express what I'd like to say to the iTunes Match developers.
I have a new iPhone 4s 32GB as the speaker died Feb 2013 and Apple replaced the phone free under warranty. See my other posts for this lovely experience.
My MP3 music library is a mixture of ripped CDs, and tracks I bought in iTunes on the PC and iPhone. I don't do AAC or any format other than mp3. My iOS and iTunes software is always up to date. I am computer savvy, much more so than my peers. I have been reading this iTunes Match community board off and on trying to find a fix.
So I should be able to fix this myself, right? I tried a few things, but none of these worked. I'm posting hoping someone has a clue how to fix this.
Clicking on the Download to iCloud button on a problem album (using U2 - Boy as my example; where more than half the tracks are grey and unplayable), all that happened was the iCloud icon disappeared. For all steps I made sure in PC iTunes that all songs of this album were checked to sync.
Did a hard reset, and my iPhone still has greyed, unplayable music.
So next, connected to by wifi and by sync cord, in iPhone I turned off iTunes Match
- went to settings > iTunes and Apps Store
- signed out of my Apple ID
- and signed back in
- turned Match back on
and no change.
So next, connected to wifi and sync cord, I
- in iPhone, toggled off then back on all Music and iTunes Match options
- made sure Use Cellular Data was on and set iTunes to on
- turned off wifi, turned on cellular data
- searched for U2 by artist and clicked Download All
- the same songs are still greyed, and still unplayable
Normally I could just shut off iTunes Match for good, rerip my CDs, then sync the device, but this is not an option because
- I'm a Veteran, who moved across country last October to be closer to family, putting my house's contents into storage, including my hundreds of CDs. I found a new job (I'm an ER nurse) but it will take time to get back on my feet and move items from storage across country. Moving ain't cheap.
- the reason I got iTunes Match in the first place was for help accessing my huge music library, when it wouldn't fit on a 32GB. Since even early versions iPhone, I've known to uncheck less popular music so it won't sync, saving space, so it's not like that's a problem.
I'm good with technology, but I can't get this Match thing to work in my favor. Which ***** because my specialty is ER Psych. My patients are any combination of depressed, suicidal, homeless, substance abusing, self-overdosed, self-inflicting harm, under the influence, fighting with security, under a police warrant, threatening, psychotic, or my personal favorite, just plain BSC... Bat S*** Crazy. If anyone needs to get pumped up for work, it's an ER Psych Specialist. Match has let me down, big time. If ever there's a class action lawsuit citing 100% false advertising, count me in.

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