I've tried the second method a couple of times (with mixed results, it looks best on hooks <. My main concern is for durability. It seems likely that this style of fly will get shredded after one or, at most, two fish.
When ever I cut the foam, I try to cut it into 2mm x 1mm x 1 1/2" strips and then cut each of those in half lengthwise giving a strip 1mm x 1mm x 1 1/2". It is time consuming cutting.
I like how you were able to position the black piece(s) for eyes.

Warmouth