There have been at least a couple of other threads about these scumbags. It's a sleazy thing to do, but not that uncommon — using a website address that's just a typo away from the real name of a successful site to catch the unwary.
If Etsy really wanted to go after them, I suppose they might sue claiming that this is an intentional deception that this is an attempt to trade on their brand name and therefore, an infringement of their trademark. But I don't know what the legal precedents are in a case like this, or if there are any.
