There is a vast amount of discontent in the Etsy community, and this has been the case as long as I've been involved (2006). The complaints of their customers apply to nearly every area of the company and are well-founded.
A large number of Etsy imitators have sprung up (ArtFire, CraftIsArt, Cargoh, Bonanza, SilkFair, Zibbet, Folksy, etc.) but none of them seem to be particularly great to me.
Etsy is pissing off their best customers every month, and thousands have already left in disgust. They have a large lead in terms of size and funding, but they don't seem particularly capable of getting anything done. The market is definitely ready for a polished craft market with decent management and good marketing.
