I leave the rough edges on my quilt until it is done being quilted, typically 2-6 inches all around.
I prefer a slightly wider binding than most, I cut at 3". I put on the binding on the front and then use the seam line to cut 1/2" above the seam (so 1/4" above the fabric). Gives me a nice full binding. Hand skills are not my strong suit but I still stitch down the back by hand, it's my favorite finish.
For most of the last year I've been doing the not-ironing my binding technique. It doesn't seem to make much difference to me, and if it is a top I won't be quilting down for awhile, I like storing it folded better (I cut cardboard into 18" pieces and wrap the binding around it. Gives me an easy way to measure.
However, next quilt I finish will probably be a donation quilt with flannel back and flannel binding. I'm thinking non-ironed is the way to go with flannel.