I would like the blockmaking and fuelmaking machines to use the cabinet's bags' content as well as the nearby bags dropped on the ground. It would avoid having to drop bags to make enough space and find the bags containing the ingredients.
As a counterweight, the process of making blocks and fuel could be a little slower when using ingredients that are not in the inventory. The ingredients in the inventory would have the priority though, or the window would give the choice of which ingredients to use (inventory vs. nearby ingredients).