I always use squares to wrap around my paper hex's. Sometimes on e-bay you can find a good deal on precut squares. The circles are a nice idea, but seems like there would be a lot of "waste" (not that we ever throw even the smallest piece of fabric away, LOL). But it would be so much simpler to just cut strips then the strips into squares.
I wrap my squares around the template, baste, sew the hex's together, take out my basting and templates, then trim the excess to the 1/4 seam.