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In other words, the workshop is not a strict upgrade to the crafting shop (also, the Occult Lab is not a strict upgrade to the Medicine Hut either, altough interestingly there is 1 item overlap between those 2 which is the tier 2 stealth cloak), You can eventually discard the crafting shack, BUT this is like super long term and you need to make sure you crafted all the Lumber you can from it that you need for a lot of different buildings. The workshop only makes imbued lumber which is not a substitute for regular lumber you need for things like hut upgrades, etc.
I would suggest just keep the workshop around, you're going to need it for a while. If you have all tier 3 gear and hut upgrades and palisades then you can think about decosntructing it.
edit: if space is an issue, look up a recent thread about fitting all buildings in. It's possible to fit 8 huts and one of every other building, which is enough to contain all followers if you want to try to house them all (imo unnecessary as you should finish the game with 5-6 followers, but the pictures give you an idea of how to conserve space)
here I got so bored I found the link for you, there's 2 screenshots of playres who fit everything in so space isn't an issue
https://steamcommunity.com/app/706020/discussions/0/1649917420746796632/
WSC to my rescue, yet again. <3 Thanks!
Only downside is your followers might decide to build some extra huts or finish the pallisades proactively if they have the mats to do so, but on the positive you won't have to worry about potentially having to demolish and rebuild stuff that doesn't fit.
The crafting buildings kinda require specific crafted mats to build for the most part, so in my experience having their husks is no issue.
edit: I wouldnt set up butcher or woodcarver that early either though because they are a terrible waste of time until mid-late game and they divert precious resources from building things you need like huts and crafting shack/forge.