I love Etsy, but I have to confess...I'm a seller on etsy so I'm biased . I'm also an enthusiastic buyer - I've bought a bunch of stuff on etsy and have had no problems. I just make sure I check seller's feedback and store policies. I have a big list of favorites but right now the ones that stand out are:
There are TONS of cute handmade purses also...I'm constantly tempted!
passerby is the etsy queen--she knows everything about it! I've received many lovely things from the artists and crafters there and have never been disappointed. My biggest order was placed with Amy L. Burns. She does amazing little matchboxes handpainted and filled with illustrated affirmation cards.
Really all the artists are good in their own way and I love that many are charitable donations. Check out AWBAR for some wonderful goodies that help baby wild animals.