Your first method is the one I always use.
As I have to get a straight edge anyway, I might as well get the straight of grain at the same time.
I hate ripping - it's like nails on a blackboard to me. They do it that way at a LQS, and also at the G Street stores.
The pulling thread method is a PITA and takes too long. This was the method used at MaryJo's.
I'll stick to method one. ;-)