Just a hunch here, but I'm guessing that if you go into the settings on your phone under the Music section, you'll find that the "Show All Music" toggle is set to off. This will hide clouded music in your library. Then when you present your picker, its showsCloudItems:
property is set to YES
by default and therefore shows clouded music.
You could try explicitly setting this property to NO
.
[picker setShowsCloudItems:NO];
But I can't promise that will work because I don't know for sure if disabling clouded music in preferences allows the songs to show up in the picker in the first place (Don't have a cable with me to test this).