"I guess I don't see exactly why people would want to fight against making sure children's items are safe for children to use."
Ah, but if that were all the law did, it would actually make sense. As it is, the law goes a LOT further than that. The restrictions it places are, in many cases, ridiculous - removing lead from lead batteries INSIDE the hoods of kids' off-road vehicles - and the testing costs it places on small manufacturers especially are beyond crazy. Add to that that some major manufacturers (who have been among the biggest transgressors in the first place!) have now gotten approval to do their own in-house testing at their labs in China while the rest of us are trying to contemplate shouldering testing costs for "batches" of one or two items, and it's a complete cluster. :-(
Example: as a tie-dyer, I'm relieved to know that both dyed and undyed fabrics have been exempted from this law. I should also be happy that I can go to Target, buy a pack of Onesies (which have already been tested by Gerber and certified lead-free, right?), and dye them - BUT once I alter (apply dye to) them, I become the manufacturer and am responsible to re-test - yes, RE-test - the same metal snaps that have already been tested, just because they haven't been exempted. I haven't added lead to the snaps, I can NOT add lead to the snaps via tie-dyeing them, but there it is. THIS is the kind of stuff we're fighting. This does nothing to make kids' stuff safer - it just puts people out of business. :-(
As to what Etsy should be doing, well, they did it! They provided a specific forum for us to discuss things, to disseminate information. (It took weeks of asking for the forum, but they did it.) They did try to interview someone from the CPSC but that was about the point I burned out on the CPSIA and I don't think that ever took place. As PP have pointed ot, it's not Etsy's job to keep us all informed. It would be nice if they came across something that should be disseminated to sellers and brought it to our attention, but in this case especially, Etsy sellers did it themselves, and Etsy helped us by consolidating information and making it easier to share and help each other.