There is SOME cutting down, because it's pretty difficult to feed a yard or three into these machines. However, as you use it, you will develop techniques to improve efficiency.
People all have different strategies for managing all areas of quilting. Some feel that controlling every aspect of the process yields a better product, such as pinning every 2 -3 inches; pressing and trimming everything at each stage; cutting fabric into small enough parcels that they go through the Accuquilt machines with very little waste. There are other people who are the opposite and are very relaxed with their processes - they don't pin at all; they don't press until the top is done; and they don't worry that much about the excess fabric cut away from the dies. Neither school of thought is right or wrong; it's all a matter of personal preference and technique.
My own personal technique is to cut the fabric small enough to fit through the machines easily, but I don't make more cuts than I feel is necessary (usually I fold the fabric small enough to fit through my cutter, then cut it across once so the fabric covers the cutting area of the die, and that's it), and I don't care much about what I think is reasonable waste. If it's smaller than 2"x2", then I don't think it's worth saving.