Streaming vs downloading music from iCloud

Its my undertanding that after setting up iTunes match and iCloud on my devices, I can now stream music via the iTunes app on my iPad or iPhone.  I also understand that by tapping the little cloud icon instead of the song name, I can choose to download that song onto the device instead of just stream it.
Upon using this for a few weeks now, I noticed that the tunes I listen to loose their little iCloud icon.  This got me to thinking, and by going into the settings and telling the device to show only song on the device, I saw that every song I've listened to has been downloaded. 
I am NOT tapping the cloud by accident, I assure you.  But has anyone else experienced this, or does anyone have an explanation?  I don't want to download every song I listen to, I want to stream it!

Some times I think Apple create their own headaches with some of their descriptions of things.
Streaming obviously means different things to different people. I guess I think streaming is the ability to display something whilst it is being delivered and from that point of view iTunes Match would be a streaming service (that also retains the media for further use).
From the point of view of the question though, where the user doesn't want to retain the downloaded/streamed content, that as far as I am aware isn't possible, they'd need to delete it manually from their devices.

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