I refuse to install iTunes and just install iCloud... so i have not confirmed this - but someone told me that the latest iTunes does not sync with Outlook. If you want to sync you need to use iCloud. They told me this in the last week or two and I haven't had time to look into it...
In my opinion, iCloud is better, at least once you understand how it works. A lot of users don't like that it moves the calendar and contacts to the iCloud folders - now that iCloud 2 can be set as default (as long as you don't use imap accounts), that's not as big of a problem. Most of the problems on
my iCloud pages are as much "user error" (or misunderstanding) as they are iCloud problems. Yeah, it could do things better, but it's darn good for v2 and is evolving.