The cloth map is feature that kicks in when you zoom out to a certain level. Stardock has said that your comp power will determine when the regular graphics go away and the cloth map kicks in, and if you have a crap PC you could play the entire game on it. It is basically a 2D representation of the map that looks like it is an old cloth map, hence the name.
Here is the the cloth map. Here is the normal graphics, albiet not as polished as they will be on release.