To be honest, I think there area a lot of Etsy buyers who wouldn't even care if they were buying reseller stuff, so long as it's at a good price and it fits their style.
But those buyers who really care about their goods being handmade/local/small batch/ organic etc. often do their own research to confirm what they buy before they buy it. So, I don't think they would completely stop shopping on Etsy just because some sellers aren't selling legit handmade items.
I'm actually glad for all of the attention to this matter, since resellers really hurt us in a different way. I mean, I can't compete with the price point a re-seller of mass produced items can offer.
So, if we can get people who make treasuries to stop featuring re-seller items, and if Etsy continues to do their best to shut down illegitimate shops, and if buyers know that they should always be cautious when they buy anything on the internet... maybe those are all good things.
I saw another thread recently mentioning that it would be cool for sellers to demonstrate that their items are, in fact, handmade. Like, offering a 'work in progress' photo in your listing to demonstrate that you're actually making your items. Or, having a tutorial with the construction process on your blog (though, that won't fly for those with trade secrets...).
Anyway, I'm not discouraged by this. If anything, I think it will lead to major improvements.