Create a Smart Playlist for iCloud Songs that have been downloaded Locally

You can't do this with a smart playlist as Apple doesn't expose the lyric field there.

You can create an Applescript that creates a playlist. You'd then have to rerun the script to update the playlist. A track has a playlist field so you'd just check that.

Here's one example of such a script

tell application "iTunes"

    if exists playlist "No Lyrics" then
        delete playlist "No Lyrics"
    end if

    make new playlist with properties {name:"No Lyrics"}

   duplicate (every track of playlist 1 whose lyrics is equal to "") to playlist "No Lyrics"

end tell

It turns out that the screenshot, or at least the correct version, is sufficient:

No doubt in part to my tens of thousands of songs, and only a few hundreds currently classified, the playlist took sometime to populate. After reading Kyle's comment, I looked at the playlist and nearly my whole library is now present.

So the answer to this problem can only logically be:

Patience