I do a blend that probably makes no sense to anybody but me!
I put my Kona solids all together, by color. Then I have another section for all "other" solids, by color. I have a white-on-white section and an Ombre section. Then I sort of go by theme - all my asian prints are together, all my "nerd/tech" prints are together, all my retro-kitch prints, Halloween, batiks, baby prints, etc. all have sections of the cabinet.
Then I have an area where I line up fabrics together that I've mentally earmarked for certain quilts. I almost always do a scrappy look so I tend to accumulate dozens of fabrics for a single quilt over a long period of time before I get around to making the quilt. Like right now I'm accumulating greys and blacks that have grid-like patterns on them; I am accumulating towards a "skyscraper" quilt I dreamed up about a year ago - all of those fabrics are together on a shelf even though not all of them will make it into that quilt. Once I finally make the quilt, those remaining fabrics will get sorted into other areas in my cabinet.
It's kind of hodge-podgey to look at, but I always seem to find what I'm looking for.
