Hi Lisa,
I actually really like your banner! The design is actually very similar to mine lol
Maybe though it might be nice to have a clean, white banner with clear photos of your work & your logo. Not a collage-type...
I do like the background of your banner, but it is so strong and may clash with some of your listing photos that have other colors in them...
For example, I did this banner for a blog. The issue is Etsy's banner size is tiny compared to a blog, but here's an idea to throw around...
http://www.thenotsosecretlifeofapilotswife.blogspot.com/As far as avatars, I do like yours but I also like the idea of rotating a piece to advertise. I'd say keep the same avatar layout and just change the photo to an item. I think your photo is lovely and I understand what people are saying...but I don't think that decision will make or break your shop. You have great items....show them off! :)