Dave,
My instructions indicate that the stitches can be left intact and the twisted end be pushed within the gap between panels. This is not such an easy task (at least not on my hull--there wasn't room to fully push the twisted ends in the gaps) and my research has shown me that most people remove the stitches. In that case the fact that the stitches are still intact would tell me that it can only strengthen the joints. Of course you would fill the gaps, put in fillets and tape as usual.
I have also seen what you have described, cutting the stitches flush to the panels and grinding them smooth prior to filling, filleting and taping. To me that has no real advantage--but I'm no expert either. Unless it is similar to the role of steel rebar within concrete slabs and provides added reinforcement and guards against cracking. That is just a guess though. I imagine there is a little strength in the fact that the wire is still embedded within each panel and if epoxy seals them there then technically they are still helping hold the panels together.
Weight savings is another issue I'm sure. I'd worry more about epoxy application when it comes to that though. On my boat I have a lot of excess epoxy weight that would far outweigh the stitches.
One thing that I have not seen discussed (at least not lately) is whether the stitches twist on the hull interior or exterior. I have seen it done both ways. In my case all my stitches were to the exterior. This seems like the best way since the ends of the hull can get pretty tight if you were trying to twist on the inside. I guess at that point you'd just move those few to the exterior.

Ah, cutting out panels--I never knew how unsteady my hand was until I did that. It seems that in building mine I have worried far too much about things that ended up being easy. While I was not concerned about the actual cutting I was concerned about scarfing and it ended up being a fairly straightforward endeavour. I did worry after cutting that my wobbly lines would be a problem. This method of building is forgiving and I only have one spot to fix and it shouldn't be very noticeable--if at all--when I am done. My biggest problem now is slowing myself down to do things right. I have made all sorts of mistakes of which most will be hidden. All my work now is on the exterior and I have to be on my best behavior/patience to do a good job.

Have fun building your Mill Creek.

--Tony

: I'm just curious. I have started my CLC Mill Creek 13 and am wondering what
: are the advantages in pulling out the wire besides a weight savings of a
: pound or two? I have not yet reached the stitching stage (Still cutting
: out parts).

: CLC says just grind off and glass over them, others say heat and pull them
: out.

: Dave S