" Basically, it'll look through your collection and if they're in iTunes Apple will note that you already own those songs and allow you to also sync those songs via the new iCloud sync mechanism."
I know that is what was said, but its like saying "you just add extra water to your gas tank and you'll get mileage based on the number of gallons in your tank, whether or not its all gas."
The sentence construction is coherent but conceptually it doesn't pass the sniff test. Here is the rub.
"music that you own"
Unless you've been living under a rock for the last 20 years you know that there are two interpretations of this phrase. There is the consumer interpretation:
"I bought the CD at the store, I can do anything I want with it, copy it, transcode it, destroy it, use components in a playlist I've created, or use parts in my amateur video on squirrels."
There is the RIAA/Music Label interpretation:
"You don't own the music you own a piece of polycarbonate plastic which can reproduce the performance of the noted artist in an sanctioned playing device that has not been modified in any way. You and no more than 12 friends present, and who have not paid you any consideration for hearing said performance. Any other use is strictly and unequivocally forbidden."
For years, even though the record labels had no way to enforce their view of what you could and could not do with the music in your possession, they really haven't varied all that much in their opinion what rights they didn't give you.
So when you say "music you own" it reads like you have the consumer interpretation of that phrase, and yet Apple isn't a consumer, they are animated pile of cash which sells player devices, so it is incredulous to me that the music industry would simply "let" them do what you have described they are offering to do.
If you (and Apple) had instead said to take advantage of this services it is required that you go to an Apple store with your original CD, which would be photographed with you by an Apple employee where they would record your name, birth date, receipt or other information you brought along to prove you had acquired the CD legally, and a sample of your DNA. Then they would exchange your CD for a unique identifying code that you could apply to your iTunes account which would enable you to listen to that CD via iTunes on any device connected to iCloud but would not allow you to transfer the song from the iCloud for 'offline' playing.
If you told me that that was what Apple was offering I'd just nod my head and believe you.