I have never ironed binding the way you mentioned but it does make sense even though you need to be careful that the quilt doesn't get flattened too much. When I make small items like wallhangings and table runners, I machine-stitch the binding on the BACK, press it out away from the edge and then turn it to the front, press it again, and then top-stitch very close to the inner edge of the binding. Pressing ensures that the binding is very straight and makes it easy to stitch. Hope this helps someone else!