I do fold my bindings in half - and then baste the raw edges together. I DO NOT press the bindings in half - because as the binding is folded over and around the edge of the quilt - the folded edge is a couple of threads over from the pressed half-mark and then it becomes more unwieldy to work with.
I like a slightly wider binding - I cut mine 2-7/8 inches - (gasp!!!!!!) This finishes to about 7/16 of an inch.
Anyway - I always do a bit of practice attaching (maybe about six to eight inches of stitching) with the longest stitch setting to get my width setting right. Sometimes it takes several tries to get it where it I want it to be.
I do prefer the look of handsewn on the back - but this is to illustrate the look of a wider binding.