"The cutter" in my imagination is a reference to time and the in-between the
7th floor (god) and the bottom draw brewing "alternatives" the devil.

With every situation (second) being a cut, gone forever, "like tears in the
rain".

"Not just another drop in the ocean" i imagine into thinking about losing
"my" collection of memories and ego into a borg heaven ocean. Do you think
in heaven you'll be sitting on your own cloud or wont it be more likely
you'll be absorbed into his being. Your father eating you up into the borg.

But this seems more reasonable and boring:

"Ok, the 7th floor is referencing this Broadcasting building in London,
where BBC recordings take place (or used to anyway). Cello tape I believe
was used in recording to create a certain sound with a microphone, or maybe
just taping mics together, and for other various purposes. So, the way I
look at it, they were a struggling band, putting together instruments or
setting up their stuff in a studio as best they could, trying to make an
impression, and hoping they would be spared from the "cutter" or the
critical minds of the music industry who have little patience for
experimental, creative music. They're hoping that the industry people on the
7th floor who control their destiny are "brewing alternatives" which would
allow their music (the stuff the music industry might put in the bottom
drawer initially) to actually see the light of day.

"Say we can, say we will, not just another drop in the ocean." He's saying
they are not just another flash in the pan, that they have something to
give.

A parallel to all of this (my own interpretation of course) is the idea of
the cutting itself. Cutting- as in the way a person with psychological
issues might cut into their own skin. This is done for many reasons, and in
some cultures the cutting is done as purification rituals (others call it
bleeding, and this practice used to go on all the time). In this case, I
think he might be referring to the fact that the industry sort of takes
chunks out of you when you become part of it, and he is wondering if he will
still have the raw emotion that he had before he got into all of this, that
the industry doesn't numb him to all of this manipulation. "Will I still be
soiled when the dirt is off" to me is another reference to trying to wash
away guilt, and that ties in with the cross/religious reference as well as
the sacrifice in "figurative" blood he is making to become an artist. He has
to make some artistic sacrifices if he want to "escape our lives" of
starving artists, or he could just be referencing the art itself as an
escape. Also, there is always figurative blood spilled when an artist
produces something.

I also really love the line about "happy loss" this really meant to me the
true nature of being an artist. There is some bit of a masochistic tendency
I think in really good artists. They sort of enjoy suffering for their art
(or cutting for that matter), as it can be a wealthy source for creative
ideas. It's a necessary evil, so to speak. The pain (the cutting) creates
the art (the release, or rush...but also the loss of blood...hence, the
"happy loss".... sorry, I just love the metaphor) Lots of great artists have
always been somewhat self-destructive, so I think there's something to that
in here as well.

Also, along those lines, "will I still be soiled" means that if he is
accepted as an artist in the industry, he will have some means, so he won't
be as much of a "soiled," starving artist, but will that mean that he will
be worthy still of making great art? Will his art be viable if he's not
struggling, since that what spawned his desire to become an artist in the
first place (by spawned I don't necessarily mean he was driven by money, but
rather that he really developed his artistic eye as a struggling outsider)?
Additionally, this could also have to do with his worries about failure.
When the blinders are off, when everything is tripped away and he is
exposed, will he still be shite?

And when he says "watch the fingers close, when the hands are cold," I see
this as meaning that he needs to remind himself to keep it together. He
needs to stay away from getting caught up in the release, and focus on the
art. The release that the actual cutter receives can be too much of a good
thing if too much blood leaves the body. Just as the release of emotion in
art must be tamed as well, because ultimately an artist wants to harness the
emotion and articulate the experience with an objective, critical eye. The
risk is dropping into a self-destructive vortex.

So all of the good stuff: self-doubt, stuggle, anxiety, fear of success,
fear of failure, overcoming personal hurdles, maintaining integrity- it's
all in here, a great great song as far as I'm concerned. And I didn't even
get into the power of the cutting, ripping guitar chords and the sounds of
the climactic chorus! Oh well, there's always next time!!!"

http://www.songmeanings.net/lyric.php?lid=56154