@Anne - I feel my target market isn't too fussed about only shopping within the US. If anything, being made in England adds a certain caché
I got a fair few last minute orders, but they were all well aware that I'm in the UK, so I didn't have to worry about cancelling any sales.
If I were new to Etsy & saw prices listed in $, I'd assume that the shop would be in the US, as the shop location is much smaller text than the price, so easily looked over. And it listed in £s, I'd assume the shop were in the UK, or in Euros, then in the EU. If I were in a hurry for the item, or if I didn't want to pay Customs fees (the threshold for which is crazy low here in the UK), I'd be kinda irritated to find out after the fact & then have to start the process over looking for an item that better suits my last-minute-book-report needs. If, on the other hand, it's something I can't get from a shop based in my home country & I'm not in a desparate hurry, I'm more than happy to wait.
I feel it makes an easier shopping experience for the customer, at the end of the day. And in turn, that makes it easier for me.