You're the Pundit: iCloud's Future

I'd say they can't add true STREAMING because they would upset the cell companies and ISPs.

But I would like to see on-the-fly updating of playlists while you're on the local network without "syncing". For instance if I start playing a shared library on my Apple TV, while using my iPhone as a remote, I'd like to have that playlist (video or audio) transferred to the device so when I head off later it goes with me.

Of course the BIG error in doing that right now is that Apple doesn't like to let non-itunes purchased/ripped media transfer between devices over the network.. even if Apple IDs are the same on both ends. I understand not wanting iPhone-to-iPhone music transfers in every high school but between authorized machines that has always been a sore spot of "big brother-ism" to me.

I agree with you one million percent. The future is streaming. I have contacted Apple several times regarding this issue. I asked "why can i stream a rented movie on my new apple tv, but im FORCED to download the very same movie on my ipad 2." I know they are not identical instances, but the underlying message is the same...streaming. Why would i ever want to store anything anymore? As it is, i stream all my music and movies to my iphone using my laptop as a server. Apple will offer the streaming service as a paid feature, I'm sure. Give it time

I actually ask this same question, and will probably write something on this at my Google Plus account in the very near future, but cloud services in general are dependent on two things: the home ISP and the mobile ISP. At home, if you don't have a decent upload speed, a Cloud service might not be very reasonable at this point in time. iTunes Match kind of answers this via matching what's in your library as opposed to uploading, but that fully assumes that all tracks are correctly tagged by the end user. If the end user is a pirate - correct tags are hit or miss, so that leaves uploading...which ain't great in America unless you're fortunate enough to have Verizon FiOS.

Secondly, mobile carriers no longer have unlimited services. I know with the way I listen to music, I'd go over my monthly limit each and every time simply because I am enjoying what I stored into the Cloud. The low end option of 200mb is a joke, and 5gb can easily be reached if I commute for long periods each and every day.

Cloud services are very ideal as it allows me to opt for a lower end iPhone or iPad while still being able to connect to my entire library, but cellular providers and even residential internet connections tend to shoot the idea in the foot before it can even start running because of the limitations they put in place for the end user.

Indeed, I really hope developers makes this possible!
First they have to start making universal apps though (instead of ripping off iPad customers) as the state sync can only be done for the same app and not between different apps like an iPhone and a HD version...