It's not something I'd do, either, but it might be good for a total newbie.
(Did she really say to cut 1/8" from the stitch line? I'd leave at least 1/4" if it were me. I'd be worried about it fraying and coming apart.)
If I wanted use a shortcut on this type of block, I'd use the freezer paper method (no raw edges) to applique a circle into the center of a square of fabric, then cut the square in half both ways. That would give me four "cheater" drunkard's path blocks that I could then rearrange however I wanted. No (or very little) wasted fabric. In fact, it just occurred to me that this would be a fun scrappy quilt idea!