No matter if iTunes is actually going to bring back local contact sync according to the latest beta previews, it will still be incapable of correctly managing data across data.
The problem is the following: if you have your default Contacts account set on to your iPhone anything you enter there won’t show on your other devices. That is whether you add a new contact or you modify anything existing this won’t show up on your computer nor any of your other devices via iCloud.
Worse: there is no way you can move duplicate or transfer this contact and push it to iCloud. This is simply not something possible on the iPhone or in iTunes!
DiskAid version 6.6 allows to properly manage Contacts and provides a very simple remedy to this problem - no longer will any contact be stuck onto a device, it will easily let you export the local contact(s) to your computer!
You’ll only need to import the newly created vCards to your computer’s contacts manager which iCloud syncs (Outlook on PC, Contacts on Mac)
(This support entry details the (quick’n’easy) procedure)
So save yourself the trouble and make sure you have set the default contact account to iCloud on your devices in the future.
Happy new contacts!