local workspaces are hopelessly broken for repositories of any real size. They're slow, you get local store conflicts when running multiple copies of VS, etc. Server workspaces are a pretty poor solution if you have remote workers on poor connections.
So far Git integration seems good, but I have only used it on some smaller projects.
Here's a moaning email I sent to a few devs I work with in April re: TFS:
"...In the office it's slightly better, but TFS is still slow. This is just the tip of the iceberg with TFS though.
Open TFS explorer - 20-30 seconds
Open a folder in TFS explorer - 20-30 seconds
Rename a file - forget it, go and get a coffee
Add a file - forget it, go and get a coffee
Delete a file - forget it, go and get two coffees
Edit a file - Often I see "Waiting for a required operation to complete..." -- see below
Then when you add into the mix that I'm on Virgin media who are the shittest internet provider on earth and who clearly do traffic-shaping on VPN connections; and they constantly drop my VPN connection, which will cause TFS to lock-up -- you might start to see why I'm going slightly insane.
Yet when I work on a pet open-source project with Git everything is sweetness. It seems like the Visual Studio team just started again with their Git integration. It doesn't even have to reload projects when you sync and a project file has changed, it just happily merges it in.
Ultimately even if we host TFS on the best server known to man, I won't ever get over the fact that Virgin media are going to be constantly fucking me over. So a local-store makes much more sense. TFS has a local-store mode, but (incredibly!) its performance is worse than the server version. It seems to be because our store is too large for it (over 100,000 files).
I think it just goes to show how awful TFS is if they can't even create a local database which can manage 100,000 files.
I see this error all the time (on VS 2012 and VS 2013):
[Picture of the 'Waiting for required operation to complete dialog']..."
Sorry if I'm bitching about your work, but it seems the Git integration is the only real game in town right now. It really is very impressive compared to the other options.