I have done exactly that. I like a binding that's wider than 1/4". If the points in my quilt top are 1/4" from the edge, they would be cut off if I cut the backing and batting even with the quilt top and then sewed a 3/8" or wider seam to attach the binding. So I cut the batting and backing (with the rotary cutter and a ruler) a bit away from the quilt top to preserve the points.