I have read that adding FREE SHIPPING to your titles, hurts in Google, that they do not like it. Having said that, I see plenty of it around!
I tried on a few items, it did not change the sale. They sold later without that embedded in the title or description.
If you add your shipping cost to the sales amount remember that Etsy takes a % of the sale as well as PayPal. So when you increase that amount, you get a bit more deducted.
I don't think it is dishonest to do it, Pottery Barn, and other big name online stores do it all the time. Most of us know that Free shipping is written in somewhere.
Market studies have proven that consumers like to see a big fat 0 in the shipping box!
If you read the trends and forums, Etsy will suggest tags and occassionally Free Shipping has been mentioned. I think it is a personal decision. It does not have to be across the board.
Choose a few items and try it , don't forget to mention FREE SHIPPING IN THE CONT'L US ONLY, otherwise you will be mailing to Lithuania or Hong Kong and have to eat a bundle on it!
Track the views from when you started it and see what happens!
Good Luck!