Yes, I see now that there are more calenders listed on the left side under the iCloud calendar, so I assume they are in the iCloud data file. It looks like those calendars just need to be selected, and they contain the missing calendar events I referred to above. Thanks for clearing that up.
I want to make sure I am fully understanding the pros and cons you mentioned above.
Please confirm if I got it right:
iCloud sync: Instant sync over internet. But it creates a separate data file that contains the calendar and contacts. And it doesn't work with the to-do bar or Outlook today.
iTunes sync does not create a separate data file, but only syncs to one computer. (and can do the sync over usb cable or wifi).
Also, when does the iTunes sync over wifi happen? Do you have to initiate it? Or if iTunes is running and the iPhone is on the wifi network, does it happen immediately, on its own?