Great organizing job.
I tried to do that once but I couldn't bear to cut anything into regular squares and strips. I did cut some small pieces into leaders/enders but now I even regret that, because since I took up applique - every tiny bit might be just the right one for a flower part or (my latest!) a fish fin or a bird beak.
So I neatly fold them by fabric/color batik vs cotton print and put them in clear plastic bags. All it means to me is that when I start a project I get to pull them all out and enjoy them all over again!
But never ever throw out anything bigger than 1"x2".