A group of people who create handmade art and crafts that broke away from #etsy and formed their own coop. They now run an "actually handmade" marketplace at artisans.coop

So there are some places where the people are fighting back.

Time will tell if people really care if things are handmade and the profits go to the creators, or if they just want cheap arty/craftsy type things. If not, it's another data point to add to your thesis. I hope people do care.