The Mechanics Institute, where craftsman learned and offered their wares in my town, was founded in 1801.

Its still here, today.

I wouldn't dismiss an industry based on business failures. The restaurant industry still exists, despite it being almost a guarantee that you will fail.

There's also stores with hand-knitted clothes and bears, sculpters and painters.

Yes, all of these are niche - but they survive because they embrace a different business model.