I favor the idea of saying you just can't work in that tiny space any more, not only that, but tell her its a little dangerous using tools in such close quarters, and that you're going to put up a much larger shed in the back yard and ask for her ideas on how to finance and then organize it. Get a used book on shed building and another on shop organizing and leave them around for her to notice. Be perfectly serious about it, in fact build the shed if she goes along. This could be called the shed obsession approach, or burying a small problem under a much bigger one.
Don't know how you use a table saw in your tight shop, but complain that you desperately need a really great table saw and it won't fit in that space at all.
My wife knows I get grouchy unless I have some time to myself in the shop, so she seldom comes out to the shed/shop, which I've taken pains to have at least look organized. I also make a point of listening and paying attention to her whenever I get back out of the shop so she has pleasant associations with my shop time...a wee bit of operant conditioning. Just don't anyone tell Mrs. Desert Rat I said that.
But everyone's situation is different, so you'll have to choose what you think is the best approach.