I have a mix of both in my garage. My garage is 24’x44′. The first 22′ is boat and wife’s car parking, so it has a little bit of shelving along the walls and hooks for shovels, brooms and such. The back is my ‘work area’. I’ve only got cabinets above the work benches, the rest is shelving.
It comes down to what you use your garage for. I use mine for storing duck hunting and fishing gear and also working on ATV’s, dust is minimal. If you do a lot of woodworking, cabinets may be your better option (dust). Do a lot of metalwork? You’ll want a cabinet for your flammables.
Cabinets are nice, but you’ll quickly find limitations. Yes, it’s nice not getting dust all over stuff inside, but being limited to things that fit inside with the door closed can be a challenge. I like the shelving more than my cabinets, but keeping odds and ends in cabinets like spray paint, fertilizer sprays, bug juice and such is nice. Some fertilizer sprays and granules can smell pretty potent, cabinet doors are nice to contain it a bit.
And as always, there is no such thing as too big of a garage…