Etsy is more of a boutique, while eBay is a garage sale. PayPal, including the use of credit cards through PayPal, is widely used on Etsy. And while some call it confusing, it really isn't if you explore for a little bit...the same could be said for any large website, even this one.
People come to Etsy looking mostly for handcrafted goods, but they can also find supplies and vintage items for sale. You do have to market your shop to get the full advantage, but the community network makes it very easy and enjoyable.