My understanding of both Spotify and Rdio is that the 'free' and 'paid' versions only differ in the services offered, not in the music availability. As pro the paid streaming services as I am, you'd think I was already signed up for one of them, but just don't turn on the music as much as I use to.
I've been reading about the glitches being caused between the streaming service and existing iTunes libraries. Fortunately, I have 2 backups (actually 3 since one of those is on a RAID 1 storage) of all my media separate from TM and cloned backups. I also don't use playlists, nor do I give a hoot about keeping track of how many times I've listened to my favorite vs non favorite songs. So for me, it's just be a matter of the time to blow it away and restore everything. I'll likely take that chance prior to an update from Apple to fix any of the current issues.
That 'Connect' list... omg, I use to download some of the free content iTunes was giving away. After I finally recognized, I was not their target, and literally ended up keeping 1 out of 100 of those songs, I quit doing that. All of that freebie junk, well guess what, I'm now "following" all that crap. So, it got turned off immediately.
edit:
Glad I wasn't the only one that couldn't figure out where all that stuff went. After somone else mentioned it was still there, I went to sliding, touching, scrolling everywhich way on the screen until I lucked into it.