Bob that's where I am these days. Wood and wood "saves" are taking up too much space. I am suffocating in the shop and I am the cause. Before the winter sets in here in Durham, I am going to convert my shop to a boatbuilding shop and I don't need all these short pieces under my feet.Things get a little easier when it is acknowledged as a predictable cycle. Keeping and using cut-offs is what most recreational woodworkers strive to do. Acquiring good wood is an effort and an expense.
Dealing with the storage problem cut-offs present is a matter of setting priorities and making the hard decision to purge the pile. Set a minimum size or species to keep and go for it.
After the purge, you'll find that in the first few weeks, you'll wish you had 5-10% of the wood back but you'll appreciate the new space more than you miss the wood. As time goes on, the cut-off pile will increase to the point of being marginally useful again. That's usually right before another purge is necessary.
There will be problem pieces that you've had for years and not used. There's almost an emotional attachment to those pieces because you've put so much care into their storage. That's just the way it is and is going to be.