What is the purpose of (and criteria for inclusion in) the "Downloaded" section of the iTunes Library? I've just upgraded to iTunes 12.7, and there is a new item in the Library section of the sidebar: "Downloaded".  When I click on it, I am shown the same set of items that appear in the "Albums" section, but sorted by artist name.

As far as I am aware none of these items were downloaded from the iTunes store: most were ripped from CD with a few downloaded from other online music providers.

What is the purpose of the "Downloaded" section?  Is it an error that it is showing a lot of music that was not downloaded?

How might I see a list of music which was actually downloaded from the iTunes store?
So, as far as I can tell the "Downloaded" section of the iTunes Library is just all music stored on the local machine (i.e., which can be played without needing to stream from the ITMS / iCloud / Apple Music).

The name makes sense if you originally obtained all your music by downloading it, but for the rest of us "Offline" would be a better name for this section.