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The easiest way to accomplish this would be to use Conxt. All you have to do is start your free account and auto-import from gmail (and other platforms). Most of the duplicates will be auto-merged during this import process. No data is lost during this. Then, starting at that point, simply check the checkbox next to the ones you wish to delete and click ...

Gmail seems to be rather strict about the +OK response; what you're seeing is nonstandard but innocent silliness like "iSCREAM ready to rumble" getting rejected. So, the short answer is: No, you will not be able to use Gmail as an IMAP client for your iCloud account (so far as I know). If your primary concern is sending and receiving using your @me.com ...