I am still learning my favorite way to bind, but I use a 1/4 inch seam allowance to put my binding on with, and usually give my quilt roughly an extra quarter inch of backing and batting beyond that to 'fill' the binding. I am still working on getting that perfect mitered corner with double-fold binding and bias tape binding, and have learned the hard way to cut my strips no less than 2.25 inches. Anything smaller than that and I really have to fight with it.
On my last quilt I tried the flange binding and loved it...so much easier than any other binding method I have tried. I even managed almost-respectable miters! The only drawback I have found is with the method I used the bulk of the binding ends up on the front of the quilt, not evenly distributed between front and back. I wouldn't use it if there are any points along the outside edge because they can get cut off easily.