I also remember the ripping. It was wonderful. However, times have changed. All fabrics are not created equal and some fabrics lend themselves well to ripping, others do NOT! Some fabric grains seem to take off on their own and go in strange directions. Others will follow the grain, but are so crooked on the bolt, you lose a lot. If a fabric store cuts and rips, they are losing a lot of fabric going back and forth to compensate for the previous cut. In these times a store cannot afford the losses.
There was a customer who grabbed some dupioni and started trying to pull threads and making a huge pile of mess of the silk. She stated the clerk would not tear it, so she was going to. The fabric had to be cut and thrown out. Dupioni is expensive.
Another customer bought 28 yards of fabric for tables for an event. She went home and ripped her fabric for the tablecloths. Since the fabric did not tear straight, every tablecloth came up short and oddly shaped. This was 90" wide fabric and a total loss. There was no more fabric left and no time to order it.
I was always taught that torn fabric is weakened. It is not just the fraying and the rippling. That is an indication that the fabric has been stressed and washing cannot cure it. Dark fabrics will show a change in color. It is suggested to cut at least an inch into a ripped edge so that the weakened fabric is not part of the seam.
There are pros and cons for both, but you need to know which fabric you can cut and which can be torn. When you are throwing around hundreds of bolts a day, it is impossible to know how each is going to react. It is usually best to play it safe and cut.
When Moda says rip, then rip. They know their product and are confident it will rip beautifully and I am sure it will.
No clear-cut answers here. Just know your fabric and do what is more comfortable for you.