It seems like every other guy has pegboard up in his shop in some capacity. Wondering if it really is the cat's pajamas, or is there a better alternative?
As several members have indicated, most shops need a variety of storage options defined and refined by the space available, the work done in the shop and frequently, the alternate uses of the shop space.
For me, my shop is in my two car garage--where I park two of my cars and my two motorcycles--so space is limited and used primarily for vehicle parking.
When I moved in, my garage was four finished but bare walls. I started with a bench I built from the oak cabinets ripped from my dining room remodel and mounted pegboard on the wall above. I added sturdy hanging shelves above the sink and along the entire right side of the garage, leaving two areas for long tools.
I'm more into woodworking than blacksmithing so I don't have a vise on my main bench--I have one on my aux bench but still rarely do any serious pounding--so I've never had an issue with tools falling off my pegboard. Besides the normal peg hangers, I also use a screw-in system for odd or large hangers.
What I appreciate most about the pegboard is it allows for flexibility and growth. Since I've retired, my tool acquisition rate has increased considerably and I've been able to reorganized the pegboard several times. Also, some hangers can be pressed into service for tools they were not designed for--since I use magnetic strips for my screwdrivers, I use 6-gang loop screwdriver holders to neatly hang my hand saws (see upper left in the photo). I even use a couple of trashed sockets screwed into the frame of the board to hang my torque wrench and breaker bar.
Since my pegboard is now reaching critical mass, I've acquired a couple of Kennedy 520 machinist's chests and a Kennedy 6-drawer cart in addition to the Craftsman 11-drawer chest that has been sitting on my bench for over a year waiting for me to restore it. I'll have to force myself to take a break from Estate Sale-ing in order to reorganize everything.
So I think the answer to your question is it shouldn't be considered the cat's pajamas, but it should be considered a useful storage tool that complements and coordinates with other storage tools. Just like you wouldn't limit yourself to owning a single wrench, you shouldn't limit yourself to a single storage method.
