Etsy can be an effective suppliment to a craft business. If you do craft shows an have developed a following of customers, they can still find your stuff without having to find you at whatever show you may be doing, and have acees to an inventory without waiting for your next show.
It is easy to get lost in the sea of people listing on Etsy, so unless someone really wants to find you and your wares it can be tough.
That being said , it all in how you market yourself and your goods.