Arlen,
This is just one of those things we kilted must bear. Most folks today have never seen a Kilt Selvedge and have never even heard of it used as a finished edge to a Hem.
I've actually had what I thought were quite knowledgeable Tailors tell me that it is wrong and that my kilt will unravel if not hemmed.


We who wear The Kilt have to remember that we wear a style of clothing from the Victorian and Edwardian era. If you look at old drawings of men's clothing from that period the trousers were worn at the natural waist too.
We also have to remember that there was still hand looming of fabric done then too. A Kilt Selvedge was fairly common and people were used to making clothing with it. I've seen jackets and dresses that use the selvedge edge for the bottom.
Today no one has even seen a Kilt Selvedge outside of the Traditional Kilt World and just don't know how to deal with it. Once you cut off that finished edge there is nothing you can do to keep the fabric from fraying short of folding a Hem. And then the garment will be too short.