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I just saw this article in the New York Times. It discusses some of the things that I have thought for some time — to put it simply, making a living on Etsy looks hard. I would probably focus on pattern design as opposed to production work anyway, as that is more satisfying for me personally, and I am not really one for wanting to make the same thing twice, never mind more than that.
If I were unemployed, I would probably try to make a go of my knitting/design career, but I can’t see myself quitting my job to do it full time any time soon — partly because I like it too.
I greatly respect those who do it, and so many people are making such beautiful things, but it really looks hard. My hat off to all of those who do it.