If you go pegboard, don't cheap out on the hooks, or in other words find the right hook that holds the tool AND stays on the peg board. It is pretty frustrating to take the tool off the board, only to have the hook fall out a scatter across the floor, or under the workbench, etc.
I keep a few tools on the peg board that I need in close reach--my ball peen and plastic hammer, a 12" pair of hemostats. Otherwise I use the peg board to store items that I don't want in a drawer. but my often used tools like screwdrivers, sockets, wrenches, etc., are kept in drawers. drawer storage is much more efficient--also your expensive tools are not "on display".