This is interesting reading, especially since I'm working at reorganizing my sewing room. I am lucky enough to have 2 closets with shelves and a wall cabinet that was a pantry before. In my closets, I have flannels, vintage, Christmas/Holiday, patriotic, Civil War, 1930s, novelty. Then in the pantry, I have them sorted by colors, with multi-colors all together.
I do believe that luvTooQuilt has the best system. I have my scraps not too organized; that's what I'm working on now.
Thanks for starting this thread!