To sell or not to sell?

This post is really directed at anyone who knows anything about Etsy, or about selling your own projects. Lately, I've been thinking about setting up my own Etsy shop. I've always wanted to sell the stuff I make. I've tried to a few times in the past, but it's never gone well. I would love to make money scrapbooking or cardmaking for people, I just never make the effort to make it happen. I probably should have done it while I still lived in CA, as they are much more likely to pay someone to do that than Arizonans.

The overall issues with that are:
1. How much do you charge? You have to charge enough to make some sort of profit, but be low enough that people would pay you to do it.
2. Do you charge per project or supplies + time to complete?
3. Often times people who pay someone to scrapbook have no clue how long it would take to scrapbook something, so hourly probably wouldn't work. They also probably have NO CLUE how much it costs to even make a scrapbook. So they wouldn't understand that either.
4. I know the way to find customers is by word of mouth. So I really just need to find one good customer with some good friends who would also want my business.

Now that I've started making some other things: advent calendar, wreath, banners, etc. I'm trying to think if I should do something like Etsy. But that also comes with some issues.

Here are my Etsy concerns:
1. The only people who know about Etsy are people who make things for Etsy and therefore wouldn't necessarily want to buy my stuff.
2. How much profit would I really make? You have to pay Etsy 3%, you pay PayPal 3%, but you have to be reasonable enough for people to buy the stuff, too... That then brings in all earlier basic selling your skills questions too.
3. Etsy might solve some of the customer concerns though...

So, here's what I want to know. Those of you who know me, or don't know me but know Etsy or know selling your own stuff, what do you think? What are your comments/points about the whole process? Is it worth it? What do you recommend? And for the rest of you, thanks for listening to my ramblings...