Whatever you finally decide upon, you can never have too much space, particularly storage space! For me, I never seem to have quite enough storage space, no matter how much I shuffle things around, no matter how many drawers, shelves and so forth I have, no matter how much extra storage space I can create, it's never enough! Even my work space (as opposed to storage space) seems cramped half the time, and I just recently expanded it by another square foot or two.
Good lighting is essential, too. My apartment tends to be a bit dark, even with all the lights on in the living room. There's an overhead ceiling fan light (which gives rather poor light, as it won't safely take more than a 60-watt bulb), a floor lamp I found at a garage sale and the top part of an antique globe street light that a friend converted into a table lamp many years ago. The globe light is right next to the hobby bench and gives off some pretty good light with a 100-watt Reveal bulb. In addition, on the bench itself is a fluorescent desk lamp that I fished out of the trash a while back and it still works perfectly! I put in a daylight-spectrum tube.
So between the globe light and the desk lamp, I've got adequate lighting, although sometimes, when I'm working in dark quarters, I also put on a hiker's headlamp for even more light. I would like to have more lighting; it might help to use one of those compact flourescent bulbs in the ceiling fan fixture, but I don't know how durable those would be with the vibration and shaking from when I run the fan.