I live in VA and my workshop is an unheated, uninsulated garage. I work out there year round, even when temps are below freezing. I can't say it's comfortable in the winter (or when it's 100 degrees with 95% humidity) but I haven't had any major issues. I have had some big box green wood warp on me after I built a couple bookshelves and brought them into the house, but that was more a factor of the green wood than my "shop".
1. You mention doing other hobbies which I assume means stuff scattered around for various projects. (Don't tell me you do one at a time or are a neat freak!!!) How tall are the side walls to the shed? How high do you shuffle stuff around, i.e. flipping things over, moving wood around, etc? I can't imagine trying to do that in my shed, even if it were 2 ft higher than it's 7 ft center height. If you could build a platform in front it may help, especially if you can put removable cover over it (to please HOA).
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