Paula's does indeed tear the fabric, and so does Quilter's Square in Lexington. I prefer it myself, because the tear is on the straight of grain -- and Paula, in particular, is very good about allowing an extra couple of inches to be sure you get your full measure of useable fabric.
Don't know about Quilter's Square -- never paid that close attention, but I can't recall any bad experience with torn fabric.
Just my humble opinion. :-)
Blessings,
Mary Lou