Permanently Hide the iCloud Column in iTunes
Turns out you now have to also go to the Movies and TV Shows tabs and set the same View menu option for each of those as well — “Only [Movies/TV Shows] Available Offline”). Then (and only then) will the iCloud column actually disappear everywhere. Obviously music playlists have nothing to do with Movies or TV Shows, so this must just be another delightful new bug.
If you actually want to be able to browse and watch Movies and TV Shows you’ve purchased without downloading them all first, well…too bad.
