I love your mantra, by the way, and try to keep it in mind so I am not too quick to judge others
Scraps: I organize them by color then sew the like colors together to make 'fabric' I then have a very interesting yellow (or blue or ?) background fabric to applique onto or to square up into blocks. Its fun to build the 'fabric'.
I've also cut them down to like squares (2.5, 3 or 4 inches) and store them in shoe boxes for making scrap quilts. If you plan to make HST out of them, just add 7/8 to it or a full inch and size them up to fit later