The only reason I would maintain the selvage edge is if you are only using a small amount of the fabric on hand. If you remove the selvage from the entire piece, should you want more of it later on you run the risk of not knowing exactly what you have.
If you are using the entire piece you have to make your binding, I would then say it's personal preference as to removing the selvage before or after cutting your strips.
Is there a particular reason you want to remove the selvage edge prior to cutting? I never do - just make wider seams when sewing strips together and trim during the pressing process. Just interested to see if there's a reason of which I'm unaware.