iTunes 12 update problems
Activating Apple Music also turns on iCloud Music Library, that is why your music was pushed to the cloud.

If you didn't erase your local music, I can't find any mention of iTunes iCloud Library having that function (I'm thinking of iPhoto iCloud Library and it's space optimisation function).

You are not required to be connected to internet to listen to your local library.

There have been reports of music libraries, playlists, albums, artwork and other being corrupted.

To recover your playlists, you can use a previous iTunes Library file:


Disable iCloud Music Library on iTunes Preferences > General.
Quit iTunes.
Locate your iTunes folder.
Inside you will find a folder called "Previous iTunes Libraries" with backups of your iTunes Library file, with an appended date that reflects the date of the backup ("iTunes Library 2015-07-15.itl", for instance);
copy the most recent file before the problem occurred to the
containing folder ("iTunes").
Rename the current iTunes Library file ("iTunes Library.itl") file to "iTunes Library(corrupt).itl" or something to that effect.
Rename the backup you copied to the iTunes folder to "iTunes Library.itl"
Restart iTunes.


If you have problems with your itl file, you can recover most of the iTunes Library from the xml version; there is a guide here.