Short, to the point titles that give 2 keyword phrases are quite enough. Etsy puts the most weight on the first 3 words, while Google looks at the whole title. If it is longer that say 65 characters Google ignores the rest.
Using the Google preview on your listing page, make sure that it is readable there before the "from your shop" perspective. If it seems like jumbled up words it is probably not helping you. It should sound conversational and it should be relevant to your title.
Your tags are where you put the words that don't fit or don't allow your title to be short and concise. Etsy looks at the tags right after the title to determine relevancy. Google ignores the tags completely so you will want to use the keywords or tags through out your description to be found on Google.
One final note, your title ends up being your ALT text for your images as well. Google will look at this in part with the keywords in your title to determine the relevancy of your page. So it is also good to use the keywords from your title in your descriptions as well.
I run a blog that goes into much more detail about these subjects and much more.
http://marketmyshop.blogspot.com Just check out the archives for tons of free info.