With regard to Etsy, hand-made crafts don't scale so a VC-backed startup around them was never going to be able to resist this. Only hope would be a highly moderated and curated Craigslist-style website that was happy to pay the bills, pay some salaries and keep the lights on while maintaining integrity.

Craft fairs, though, no excuse or reason. There should not be profit maximizing at local craft fairs. They're a bellwether for the degradation of culture.