If you had to choose between putting more time into etsy networking and putting time into creating more items for your shop, I think expanding your inventory is the way to go. Check out the photo tips in the seller's handbook (and the rest of it, if you're not familiar with this resource):
http://www.etsy.com/blog/en/2012/the-seller-handbook/Having more items will lead to more views, and hopefully more sales.
Also, this is just my opinion, but I'd take the line about contacting you if someone wants a piece of work that's been sold until you've actually made a sale.
