Any advantages on making paver stones vs laying a cement bed and cutting the joints?
Man I hear you on the work of making the pavers but I would do it that way.  I have cut concrete and I don't think you can expect to cut with that saw and not have a lot of nicks and cutting issues, if you can cut nice straight lines.  Your pavers will look better laid out if they are perfect.  I am not sure you can duplicate that doing cuts.  Your first method seems like work but it allows you to perfect the system.  Doing it the second way seems quicker but could have worse outcomes and if you have to scrap most of the pavers it will be a mess.