As a soapmaker, I've sold on etsy, ebay, my own website, at craft fairs of all sizes, and at my boutique. My in-person sales at craft fairs and my boutique have been phenomenal; my online sales poor to mediocre.
Craft fairs can be fantastic, and they can be horrible. Forget first year shows. She'll want to find shows that have a history, and hence a customer base. Otherwise you run the risk of doing a show where no one shows up. Generally speaking, the table fee is a good indication for how much the seller will make, once you've figured out what your own ratios are like. For example, I tend to make about 5 times my table fee in a day. Obviously, then, a show that costs $1000 is better for me than a show that costs $10.
Knowing your market is so important, too. If she thinks that grandmothers are most likely to buy her creations, then church fairs will be great. If it's young parents that will be buying them, then school fairs would probably work.
IMO, Etsy is good for pocket money only, unless you're really willing to go nuts on promoting. I'm new there, but I think I've only been making about 2 sales per week. You DO need fantastic photography. I hired a professional photographer and it was one of the smartest moves I've ever made (more for my own website, but they could be used for etsy as well.) If anyone is interested, it was The Everday Kumquat studio that did my photos:
http://www.everydaykumquat.etsy.com. You can mail her your work, she'll photograph them, and then send them back.
Ebay. Ugh. As was mentioned, it really does seem to be a place to find cheap stuff, not well-made artisanal goods. Ebay was a waste of time for me.
Never tried craigslist.
I hope your friend is able to make a go of it! If you/she has any questions that I might be able to answer, feel free to ask!
