I'm still a little confused about iCloud. I understand that it's a sync and back-up service, but can iCloud be used to free up space on your iphone? For example, can you store photo albums that you've created, or will it only store the camera roll? Will it store your music so you can just stream it from the cloud or do you need to buy iTunes match?
For what I use it for, it does. It doesn't stream to your device, per se, but when you select a song or movie to play from the iCloud, it begins downloading and starts playing while downloading. I have an 8 gb ipad2 and iPhone, and when I want to listen or watch something I just download it from the iCloud. Just delete from your device after using and it stays in the cloud. There's no way I could have such small storage on my idevices without the iCloud.