Good for her! We should all do what we enjoy. To each, their own.
I LOVE cutting. Much more than sewing... and I agree, using scraps that would otherwise be tossed out is very satisfying. You can't put a dollar amount on that.
Is your wife actually cutting all 1" squares to put together? She could save a lot of time if she sewed 1" strips together and then cut. This also gives you a little more control with the smaller pieces. Just a thought.
1.5" squares are the smallest scraps I keep, tho I do keep down to 1" strips for string piecing.