For the many decades when incandescent was primary option for interior lighting, there was really only one color option - incandescent. Generally that fell into the Soft White color range around 2700K.
CFL and LED lights introduced color temperature to the masses, and now you can find temperature ranges from 2700K - 6500K. Those range from the traditional Soft White incandescent interior lighting (2700K) to bright daylight at the 6500K range. There's a quick write-up at BatteriesPlus (of all places) with some pictures to help show the difference. Another good indication of the differences is visible on the road at night. The traditional sealed-beam headlight used exclusively in the US prior to the mid-80s is very warm. The halogen bulb (now the base lighting used) was very blue by comparison. The HID or Xenon bulbs now becoming common are even more blue (generally 5-6000K) and are actually more daylight colored, and make halogen bulbs look yellow by comparison. (The pink/purple color you see in some lights is due to ratings above 6000K. I've seen aftermarket HID bulbs in the 8000-12000K range.)
The color rendition you saw in your dad's shop would be somewhere in between based on the amount of natural v artificial light that was hitting the particular area you were working in. For doing photography of your finished works, the color temperature would be important. For general wood working, I doubt it would matter much so long as you have enough light to see by (see my beef at the end). If you're doing finishing work, it could matter based on the color temp of the final resting place of your project.
Now that the CFL & LED bulbs are coming down in price quite nicely, you can buy a few in different temperatures and put them in different areas of your shop to see which you like best, then replace everything with that temperature. In regards to my note above about finishing, you could, if you wanted to get super fancy, install more than one set of fixtures and have different color temp bulbs in each set - then, when you're doing your finishing, you could flip on the lights appropriate to the expected final destination of the piece to ensure the color came out as expected. Some may consider that overkill.
As a side note, my biggest beef with the CFLs is the amount of light (lumens) they put out. The packaging claims that a (random) 4w CFL is the equivalent of a 60w incandescent, but if you check the lumen rating for the CFL v claimed incandescent equivalent you'll see there are significant differences. The LED bulbs seem to have a more similar lumen rating for the incandescent equivalent they claim.