The smallest strips I have ever cut were one inch ... it was a tutorial (mystery quilt) done by Cute Buns ... and, you are correct! It took some time, but man is it IMPRESSIVE!
I have been working on a quilt that is 1.5" on the dark parts and 1" on the lights.
As far as bulk in the seams for quilting - - don't know about hand quilting, but I can tell you that if you IRON the seams, you will have no problem with seam allowances while machine quilting.
On the smaller pieces, and most quilts, you can press the seams open to relieve the bulk ... and for intricate piecing with lots of seams crossing, pressing your seams open will reduce the usual bulk ...
And! As far as "weight" from the extra seam allowances ... it isn't even an issue!
Consider this! When I first started making quilts, I bought a book from kaye woods for beginners .... seam allowance? 1/2" :shock:
I followed the directions, I have never forgiven her for it - - not because the quilt was heavy, it wasn't an issue - - it was the WASTE of fabric!
I am not an anarchist, encouraging people to break the "rules" - - but! there comes a point where the "rule" doesn't make good, common, practical sense, and at that time, one MUST do what is appropriate, no matter how "authority" the instructor claims to be. <wave> (even me <g>)