Anyone throwing out revives and potions?

If you don't battle much, they are useless to you, throw them away. Otherwise you could try to fight more gyms and get more than one a day, but if you already decided that you don't want to, just throw them away.

My general advice for bag space is: When your bag is full and preventing you from spinning stops, don't think of it as "Do I want to throw item X out?" but as "Is there any item Y that I would prefer over X?" As long as the answer is "Yes" for any X in your bag, discard it and spin.

My particular advice given the three competing values you mention at the end is: use Pokemon that are more ideally-suited to the task than a suicide squad. Build prestige teams and attack teams that are more time-efficient so that you don't have to stand around at gyms for as long. You'll leave the gym faster and then you can use up any excess revives and potions on your team as you walk.

Of course, if this makes you run out of potions and revives too fast, make your teams half keepers and half suicides and adjust from there. You'll find an equilibrium eventually.

I keep only the best potions, have 150 max potions and 125 max revives, around 15 hyper potions, rest are balls. I suggest that if you can't or don't want to upgrade your storage delete all regular potions and keep as few regular balls as you may need. Those are the 2 items that most drop from stops. Also 85 revives if you don't battle on a regular basis seems a lot, even they are a lot more rarer than regular potions and regular balls you should probably get rid of some, leave 50, remove 35, I would do that.

I finally surrendered to bag space.
I've been using all my gym coin to max out my mon and items bag.
Now I have no worries about too little of anything.
Although I still delete all of those banana berries.
Does anyone use those?

Get a bag upgrade. Get several bag upgrades. Max out your bag. Bag space is the single most important thing you can buy with your coins. It's very hard (not to mention inefficient) to play this game without access to a deep inventory pool.

That said, I think haltsy's advice is sound. Expanding on it a bit: ask yourself what your main focus is in playing this game. If it's gym battling, then get used to stocking up on battle gear, always being low on balls, and not being able to catch every mon you see. If it's catching, get rid of a lot of your potion stock, keeping in mind that you might only be able to get into a gym every other day or third day. At the end of the day, you're the one who knows best how to fit your inventory to your play style (though I will say having a 1000 item bag makes the adjusting a lot easier!).

I have battle days and stardust grinding days. When I have a ton of potions, I go and take down a few level 10 gyms. When I have a ton of pokeballs, I go some place with really high spawn rates and catch as many as I can. I keep doing this rotation as I generally have an excessive amount of one or the other.

Well, I'm using crappy pokemon for battling and leaving them dead because I don't get enough potions to heal my good pokemon back up, even living in a city with lots of pokestops. It doesn't take much battling to deplete a potion supply like that. I'm desperate for more potions.

Needless to say I'm throwing away pokeballs (sometimes greatballs too), all nanab berries and most of my razzberries.

The game is pretty much balanced so that you need bag upgrades to be effective, in any event...

I'd propose:
A) Throw out the potions/revives if you don't plan to use them.
B) use 1 or 2 of your "real" critters in addition to your throw aways when taking down a gym. This'll help you get through the gym faster and make use of some of those potions/revives
C) Use coins to upgrade the item bag to hold more stuff... I've finally jumped on board with this and am up to a 600 item bag... Haven't quite gotten to 600 items yet... but made it to mid-500s. :)

I try, but don't always succeed, to use what the game gives me. I when I have move revives and potions, I attack gyms more aggressively. If I'm near lots of poke stops, I try to catch anything I see. This is also a good time to use up excess berries. I use healthy B and C team mon as an additional store of revives and potions, when poke stops are more sparse. I spend ultra balls and maxrevives somewhat less freely, because they seem like the most efficient storage for poke repair and poke catching. Where I live and work, I am always going to fill up whatever size bag I have, unless I make a continuous effort to use stuff.

I use all potions if it's a heavy gym day, if not I get rid of the first two to open up space in my bag.