I think I'm going to start cutting 2" binding strips. I've always used 2 1/4". I use warm and white/natural batting. The only trouble I have with 2" binding is covering the corners. Lately I've been cutting the corners off diagonally (not cutting through the binding), and the corners turn much better. I just tried it on a small wall hanging and it worked great.
You need to do what works for you, of course.