Well, I truly am confused. Here's a quote from Apple:

"When you sign up for iCloud, you automatically get 5GB of free storage. And 
that’s plenty of room, because of the way iCloud stores your content. Your 
purchased music, apps, and books, as well as your Photo Stream, don’t count 
against your free storage. That leaves your mail, documents, Camera Roll, 
account information, settings, and other app data. And since those things don’t 
use as much space, you’ll find that 5GB goes a long way."

http://www.apple.com/icloud/what-is.html

Teresa

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