So I cut out my blocks using the GO! die on my Studio cutter. I cut two at a time, which was a little time-consuming, but certainly less so than snipping the seams! I did pick out bits of thread periodically, but it wasn't a big mess and it wasn't difficult. I've had cotton threads stick in Studio dies that were much harder to remove.
I did think once or twice that I wish I had the Studio die instead, but since I don't make rag quilts ALL the time, I think I'm fine with the GO! die. Once I get the blanket made and washed, I figure I'll know for sure!