In order to use those otherwise wasted sheets of copy paper, I collect them until I have a stack my stapler can hold together; then I stack them with the cleanest side up. Put three staples along one long side, then repeat on the other side. Cut between the staples to make three stacks of scratch paper. Sometimes I leave them the full width of the paper for longer stacks.
Love your idea! Thumbs up! It made me think that you could also fancy them up and be able to have thicker note pads by punching two holes side by side where the top of the pads will be and secure them with a ribbon. :-)