My wife sells through Etsy and has been for a while. The biggest transition she has seen is buyers moving from purchasing items, to making items themselves. While the larger, successful shops are declining, there has been a steady increase in small, beginner shops. Based on that, she moved to selling more patterns and teaching craft workshops. In my opinion, Etsy should harness that. If they provided a way for crafters to showcase how they make their products, they could start selling that. It would have several benefits. It fits a simple subscription/learning model which is very popular right now. It also encourages the handmade community that they are trying to support.