Hmmm....I suppose I have both - against my will. I don't really like basements. I have resisted strongly having a sewing room down there BUT my quilting machine is down there. I am still trying to figure out a way to have everything in the biggest bedroom on the second floor. He says it can't be done.
Currently I have 3 machines going at all times and a 4th part of the time in a 8.5 x 12 room. I don't like stuff on the wall. I have a cutting table shoved back in the corner under the eave that takes up 2' of the 12' length. I have a closet on the opposite end. It is a northern room but I love it in the summer when I can open the windows and here my fountain in my water garden.
I say do what works best for YOU. I could have almost our entire basement but I would be miserable. So, I stick with my little space right now and run up and down the stairs for excercise.
I did move the ironing board to one of the other bedrooms now that the kids are gone. It also gets me exercise!