Ebay has learned that sometimes the hand that feeds you also bites back, as many sellers have sued them for similar practices. I'm sure this will happen to Etsy eventually.
Since my original post, I have met many crafters who have had their shops closed by Etsy. People like my daughter and me, who have invested a lot of time and money in their business, only to have the mustachioed "rug" pulled out from beneath them.
As I always recommend. Please don't set yourself up to fail. Etsy is a great place to sell if you can #1 compete with the resellers #2 keep your mouth shut publicly about their evil practices #3 protect yourself by linking your shop to your own website and sending out business cards with that website address only, with orders. That way you can link to a new site IF Etsy shuts your shop down.
I thought you all might like this entertaining parody of Etsy discriminatory practices. Really, it's funny (not if you've had your shop closed though)