I have been selling my work on etsy over five years and have watched them grow, as well as my business. Etsy has had 5, soon to be 6 rounds of capital funding. They are a profit making corporation and as Chad pointed out in the WSJ interview, undervalued. That it a good thing for us.
But, we are not in partnership with etsy. They provide a service and we pay a fee. We follow site rules, we have no hand in making them.
I like having Direct checkout as an option for my customers. That is the reason I do it.
That option comes at a price for me though. since my work is mostly custom, I have currently have over 1400.00 worth of orders I will not be paid for for weeks. The cost of the materials comes from my pocket.
It currently takes 2 additional hours per week to print shipping labels and merge my records.. That may not seem like a lot, but that's a full work day a month. I will also lose my paypal volume discount since more customers choose DC, as it is the first option.
That means less money for each sale in my pocket. As a small business person, one who makes my living with my craft, those are important considerations. For now I keep it, because good customer service is my obligation.
DC, like the search ads are revenue streams for etsy. I don't think the forum threads are anti etsy or Direct Checkout. I think they are well thought out questions from people concerned about the bottom line of their business.
Etsy's bottom line is just fine:
http://www.etsy.com/blog/news/2012/etsy-statistics-march-2012-weather-report/