Pegboard has one problem though - you're restricted to mounting tools where the holes happen to be, and the hooks that are available, all of which I find to be very wasteful.

I've put up 3/4" good-quality softwood plywood (anything without voids, like marine plywood) all around my shop, primed and painted a light gray.

Now, I can run screws, or "L" hooks or cup hooks, or eyelets into the plywood, and can mount things like this scrap 2x4 rack anywhere on the panel. I'll use long construction screws run through a short piece of plastic tubing to give a soft non-marring surface for anything that is delicate.

I can get stuff all nested together making very efficient use of the space. If I have the need to do any re-organization, I can easily remove the screws/hangers, fill the screw holes with some kind of filler (plastic wood works well) cover with a dab of paint and continue with my re-organization.