I am in the no ironing the binding in half group and have been much happier since I started using this method. I do use the 2.5" binding width and I stitch the layers together on the edge of my quilt before I bind. I know it's an extra step, but it saves me ripping out when that sneaky bottom layer slips out of line. I use a long narrow zigzag stitch for the edge.
I do leave a tail at the beginning and end for joining, but apparently here I depart from the group, because I do NOT do the miter seam at this point. I do a simple straight seam and find it works great for me. It's much easier to measure accurately and I never have a problem with the bias or puckers.