I sort entirely by color---color drives my planning for a quilt. Anything left from a project, or speculation fabrics I bought not knowing what I would use them for, all go into color piles---piles at the moment because I am moving in two months to a bigger space. I love the look of those colors on the shelf! They are my fabric rainbow of inspiration!
For me, cutting in advance is work I don't need to do. I cut when I am ready to make the fabrics into something. If I cut into squares, strips, or whatever, chances are those would not be what I need for what I plan to do. That works for me!
Once I am in a bigger space, I think I will still do color sorts, though I may put them into tubs as my new space will be flooded with light--can't wait!