I don't buy that. Sorry :(
I think when it comes to SEO people work themselves into a frenzy thinking there is a magic formula. The reality is that Google (and Etsy will follow), is constantly re-working how and what they search for.
I don't mean people here - but people in general think there is always a way to get around the rules or that they have to get it exactly right etc.. The real-reality is that Etsy/Google is going to judge by content.
1.) use ALL the photo slots you have.
2.) each photo name should include the keywords you will be using as well as your shop name
3.) Give detailed descriptions in your text and repeat (naturally) the keywords and phrases that give high results that you will be using (I personally think this is where people fail - they are not using the RIGHT KEYWORDS).
4.) Give options and customs to each order (this apparently does increase your listing - the more info, photos, options ups the listing).
5.) BE ACCURATE - don't try to scam/spam with links that are not true (such as using another shops name in your keywords). In the long run this will work against you.
When I see people posting on the general forums that they can't get noticed and I look at their shop, it's obvious: not enough listings, not enough descriptions, using the wrong keywords, nothing in the about/policies that makes a buyer connect.
JMO