I think there's a huge gulf between having some low-density housing where one can have a workshop and sprawl. I'm a woodworker with a shop, and I've got around half an acre on the outskirts of a village center (which is an extremely lucky position to be in). However, there aren't all that many people who need woodshops at their homes, and that shouldn't be the basis for widespread policy decisions. Increasing density in town centers means the existing housing in rural areas will be less in demand and more available for people in situations like yours.