Pretty snazzy. I can upload music the "The Cloud" then stream it from any PC and/or Android phone (Droid X for me) Which means I might not have to pay for the Spotify service.
You still have it on your computer. It's like uploading a picture to photobucket. The picture is online, but it's still saved on your hard drive as well. You're not losing anything.
Why would you do that? Just because it's in the cloud, doesn't mean that you should get rid of the originals. I have a barely used External drive with all of my music and movies (Dancing movies...) on it. I only plug it in to put more stuff on it, so Google Music would be an ideal compliment to that.