As covered in Quilted Cupcake Podcast Episode 50, Joan Ford's Scrap Therapy: Cut The Scraps is a great resource for using up your fabric scraps. Here's the process that worked for me:
1. Sort huge pile of scraps (above) into 3 piles: strings, crumbs and cut-able. If I could make at least a 3.5 inch square from the scrap, it went into cut-able.
2. Strings and crumbs (for Bonnie K. Hunter-style crumb blocks) get their own individual holders under my cutting table.
3. Iron and cut the larger pieces into 3.5 and 5 inch squares using my AccuQuilt Go Cutter. Look at that awesome pile of squares, ready for a quilt.
It was very liberating to go through that stash of scraps.
Now, I'm sorting my scraps as I create them according to Step One above. I've already used some of the strings and crumbs in projects.