I've had them both ways, and I like it MUCH better up on peg board. When you're deciding on which hammer to use, you're usually in a hurry. So if the right one isn't in reach, you'll just hit harder with a too-small one or tap lightly with one that's too big. This is fine, really -- but if you've got the option to hang them up, you'll find yourself reaching for the right one much more often.
Your mileage may vary.
Your mileage may vary.

