DH & I use our house as our "cave" too. It's a "man and woman cave" I guess, LOL. We can handle a couple of guests but we're not set up for big parties anymore. My sewing room is the living room and I leave stuff out all over the place, so right off the bat when you step into my house you're stepping into my beloved & cluttery workspace. The couch & TV and stuff are in the 'family room', and DH has a big wedge of that room turned into a satellite music studio and there are guitars all over the place. 3 of our 4 bedrooms are also art/craft/work rooms too - DH's main music studio, my drawing & painting room/office, and the 3rd room is currently getting converted into a "shop" where DH can work on his old radios and I can work on my old sewing machines.
It's nice to have things compartmentalized, so I won't get paint or grease on my fabric or cutting table. The cats & dogs are banned from my sewing room and will be banned from the "shop" room but allowed pretty much everywhere else. I keep them out of those rooms because of safety - I've found my cat eating thread, and I'm thinking there will be dangerous things in the trash in the shop room. I just put a big cozy bed outside of the room where they can see me and they're pretty content to just pile up there and watch me.