I've heard all the talk about the return of fabric as well. And the employees you ask also have heard both answers. I would love to have fabric back as the nearest Joann's or Hobby Lobby for me is one hour away.
I said all along they were shooting themselves in the foot. The bean counters saw they weren't making a huge profit in the fabric department so decided to eliminate it. However, people like me shop for fabric then shop for our other things. Once WM took out their fabric, I saw no reason to go. I get most of my groceries at our local grocery store. They will even match WM's ads. They LOST business since I don't shop there hardly at all anymore I don't think they took that into account when making their decision to axe the fabric department.
And "pre-cuts" don't count as a "fabric department", no matter how you slice it.
I hope they bring our fabric dept. back. Until then, I just plan my trips better. And make sure I have my Joann's coupon before I head out. :D