Apparently I'm not allowed cloud cloth either. I researched it, twice in fact, built two different magic looms, and then rebuilt them twice. I never get an option to make cloud cloth. (I do see ironwool and golden fleece.) I have plenty of light clouds made, so that's not the problem. I checked the raws to be sure and it looks like light clouds are all I need. It'd be nice to know if anybody has successfully made any cloud cloth.
Also, got tired of the lag and clutter and used DFHack to destroy most of that fleece. I still have some, but I destroyed about 75% of it.
However my fort continues to be relatively stable. Tragically lost a metalsmith to a failed mood, because he wanted plant cloth. And a pegasus foal was killed by a were-warthog. I lucked out and the werebeast soon turned back into a buffalo... right after I'd managed to pull everybody else behind the walls and got my military stationed. Of course the werebeast showed up while I was working on extending the walls to enclose a bigger area, but at least I had the smarts to only put small gaps in the walls with doors.
I now have a total of 134 ponies with 93 adults, 16 foals, and 25 babies.
I also was experimenting with creating a rainbow. I note you say I need to extract rainbow juice, but that never shows up. Everythinng else works, but that final step never appears in the menu. (Which makes the rainbow extrapolator I built useless.) Of course, it's possible I'm doing something wrong.
I'm sorry I never seem to get out a post without pointing out something that's slightly broken. (Of course, that's my luck. If there's a way to break something in a game, I seem to stumble on it.) I am having fun despite the occasional bumps in the road.