Of the 2, I would favor slatwall, but would suggest a false wall with interior double doors or larger pantry style cabinetry such as you have in the photo. My entire garage is done with pegboard. They all have aging and maintainance issues, and cabinetry or closet facing is more durable.

YES. Bugs have their way with pegboard. Its indescribable.

I wasn’t even going to get near pegboard. Looks too messy and I’ve heard it just deteriorates like no other.

Have to agree that the slatwall has a more finished looked. Just wanted to make sure that it can hold up with heavy items and doesn’t start breaking or chipping where the accessory hooks go in.

Its made of the same material pegboard is made of, pressed paper and sawdust, just thicker. Thats why I suggested closets or cabinets. For residential long term quality its not really the best choice. I have slatwall at work and it will chip and degenerate and you cannot just freshen it up as easy as you could repaint a shallow closet wall or refinish cabinets.

You could DIY a "french cleat" system,

Lots of garage systems out there. Can't use slatwall unless the edge is reinforced with metal otherwise heavy items will break out the mdf edge.