Yes I think you're right, there is such massive competition, it seems to get harder all the time. I feel the only way to stay in the game is to constantly improve, however finding the time to make these changes is hard :o( It kind of upsets me that the people who are the busiest have the most difficulties with views, sales etc, there has to be a better way?
Also I get the feeling that Etsy changes the most relevent keywords, or their priority in the search, and I'm constantly tweaking, to find my items, arghhhh lol.
I hope it gets better for everyone :o)