This is just terrific! :thumbup:
What I especially like are the vertical dividers (originally meant to hold the file folders in place) that are perfect for separating your color stacks. I'll have to remember this solution if ever I get a larger room.
As for folding your fabric -- I found it saves a LOT of space to fold larger pieces (>1 yd) all the same way. (I tend to fold and store 1/2-yd pieces as if they were FQs.) I can then stack them on a deeper shelf or lay them sideways in plastic bins -- whatever works for the space I have available. I've also gotten religious about folding my FQs all the same way.
Congratulations again. :D