An excellent article on compressed air piping design can be read here:
http://www.chemicalprocessing.com/articles/2005/12.html
To summarize: the critical criterion is air velocity in the main distribution line, not whatever point acts as the minium choke point. By keeping the air velocity at around 20 fps in the main line, water and dirt will be correctly captured by the drip legs, and won't be carried across them by high velocity air.
What this means is that 1/2 inch copper tube is good for about 11.7 SCFM max as a main line at a distribution pressure of 90 psi and a sea level shop. This corresponds to a velocity of 20 fps in the mainline. 3/4 inch copper tube gets you about 26 cfm under the same conditions
The absolute max suggested mainline velocity is 30 fps, which would mean 1/2 inch copper tube is good for 17.5 CFM. 3/4 inch copper tube is thus around 39 cfm
A pressure pot sandblaster with a small nozzle uses about 15 CFM steady state. As the nozzle wears the air use goes up. Main air tools such as impact wrenches use a great deal of air as they actually operate, but are rated at a more modest CFM, since there is an assumed (low) duty cycle.
1/2 inch copper pipe is fine for most drops, since drop velocity can go up to 50fps. But if you are going to all the trouble to hard pipe your shop I'd consider 1/2 inch too light for the mainline. I'd go with at least 3/4 for the mainline to get the best effectiveness out of the drip legs. Another advantage of bigger mainlines is that the air will be cooled more effectively at a lower velocity (a given parcel of air spends more time in the line).
A loop-style mainline could be used to stretch a slightly undersized main pipe into working, assuming the flow paths going around the loop each way to the most critical drops are roughly equal.
Type M is adequate for the pressures involved. Type L might be indicated if the line is subject to additional mechanical stresses like being whacked by objects or bent by opening/closing valves or attaching quick-connects.