Why do I have to redownload my whole library from the cloud?

I just logged into itunes for the first time in a little while, and I couldn't see my library because it was no longer downloaded to my computer. I understand that the cloud is omnipresent, even if you decide you don't want to use it, but I'm confused.
I automatically hide cloud purchases (it never mattered because I never purposely put things on the cloud), and so I now have to manually re-download my whole library from the cloud.
Does anyone know why this happened? Was it an update? This seems really silly-- I understand automatically keeping things on the cloud, but why would anyone think I don't also want my music on my computer?
And are there any quick fixes, or am I really going to have to sit here downloading for the forseeable future?

I just want to make sure this doesn't happen again.
Make sure you back up your computer before installing any updates.
Installing an update should not delete files but from reports here it happens occasionally.  We don't know why and given that probably only a very few people lose their libraries through updating versus millions of updates it is something you simply have to prepare against.  I am not even sure what happened in your case because thgis presence of some files doesn't match anything I can think would happen.

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