This is just my opinion, FWIW
When I built my mechanical shop I did the entire wall behind the bench with PegBoard (which is what I presume that you're talking about). That's about 12' long and 5' from the bench to the ceiling. I absolutely loved it .... for about a month. I now hate the stuff so much that this summer I'll be tearing it all out and putting up sheetrock.
*MY* problem with pegboard is that no matter what you do, it looks cluttered. Stuff hanging there that doesn't get used much will get dirty. There are cheap hooks, and expensive hooks. If you get the cheap ones, the hook falls out every time you touch the tool. If you opt for the expensive ones, it can get VERY expensive by the time you have everything hanging. Tools hanging there, even with outlines, are an invitation for anyone to grab a tool fully intending to return it, then they never do.
You may love the stuff and it may work well for you. For me, however, I've suffered the crap for 5 years, and a year ago went and bought a good tool chest (locking). I'm much happier.