Photos can really sell a piece for you. The more accurate your colors are, the better, since there is enough variation on viewer's monitors to begin with. It is highly worthwhile to invest some time in photography, scanning, and a little cleaning up with photoshop or other editing program.
In my opinion, when it comes to art, you first photo should be either:
1) a clear image of the artwork in it's entirety (very useful, does not waste limited pixels on "fluff" and shows exactly what you are selling)
2) a close-cropped framed image of the artwork (moderately useful, everything looks better framed, but ask yourself whether that will leave you with an image that is too small to make out. Best for simple design.)
3) a close-up of a focal point (sometimes useful depending on circumstance)
Don't stop there! Have a variety of other views:
1) The detailed close-up to show quality and craftsmanship
2) Your work "in situ," framed and presented as it would be in your ideal showplace (not necessarily a gallery, think hard about your audience)
3) An image of your work being made, gives authenticity
4) Gratitude photos from buyers - this is wonderful because people can see how others have used your work to adorn their spaces.
Make your whites white, your blacks black, and be very VERY careful not to embellish a work of art through editing if it will not look like that when it arrives. Accuracy is key.
As for the amount of featured photos used on your page, does your browser appear the same as mine? I have a row of three as the maximum width of columns. I think I will take down all but the three (chosen for variety) so that the shop appears organized. I don't think featuring the items on your page affects their position in a search. I think that is what advertising through Etsy does. Is this accurate?