Etsy is great but you need to know how to market yourself and get your shop and name out there or you won't get a lot of hits. You also need to know how to tag and name your items appropriately so they get caught into search engines and searches on Etsy.
Price generally isn't a big issue, if other people are selling comparable items as similar prices then I wouldn't be concerned with the price. People will pay for quality items when they know they are quality. When people go to big box stores they aren't expecting a quality product, they are expecting to purchase something they'll use a few times and probably throw out because the seams will come up, etc.
How much does Etsy charge you now? I don't think you should charge to much more than what you would charge at a craft show because don't you have to pay a fee at a craft show to have a booth? It's pretty much the same concept and I've never heard of a lot of people doing great at craft shows...maybe its different for you though.
It may be beneficial for you if you go to craft/quilt shows and find that people are really interested in your quilts and you give them a business card with your shop info on it so they know how to find out and then word of mouth happens and can help get more people to your shop too.