Granny,
If someone googles handmade soap, they probably won't even find me, honestly. There's a sea of soapers out there, and it's not an easy field. They'll see both my kind of stuff, though, and the melt-n-pour types who use soap bases. They're all mixed in. They'll also see liars who claim their soap is "all natural" but who use fragrance oils (decidedly not natural) while I use only the more expensive and more limited scents provided by essential oils. So yeah, I definitely get your point and in my heart, I agree with you.
But in my head, I think it won't work. I really hope I'm not coming off antagonistic here, because I really don't intend to be. I just feel like somehow I'm not making my point clear.
I see a few problems with separating things out the way you're suggesting.
1) I've already described the first, in that at what point does an item require entry into a specific category? Using my puppet as an example, would I be able to put him into "hand-sewn" even though he was 10% machine sewn? Or would I have to put him in "machine sewn," even though he was 90% done by hand? To use your own example, what if an item like an afghan was partly machine-knitted (which I've never even heard of, unless you mean those knitting looms I've seen at JoAnns?) and partly hand-knitted with needles? Where would it fit in?
2) The second is that with all the fallout from Etsy and the jaded feeling of so many Etsy sellers over that venue allowing mass-produced, I feel like calling things machine-made here will give the impression that we're going the same direction and allowing non-handmade. It's just a perception issue, and we need to be careful with that. At that point, it becomes a marketing issue, and there's nothing more important than choosing the right words and presentation.
3) The third is that people who are not crafters, not "in the know," are our eventual targets. While I'd love to sell all of my stuff to all of you here, in the end, you're not a large enough market. I want to sell to the world at large. And those people need to be taken into account when we think about things like this. What will they think of the word "machine" in a category? Will they know we mean it's still handmade, just in a potentially more efficient way? It's a concern.
4) And the last is that I think to some extent your concern is unwarranted. We'll use your quilt example. Say I'm looking for a quilt. I'm figuring I'm going to spend a couple hundred dollars or more. Well, not being a multimillionaire, that to me is an investment of sorts. I'm going to want quality. And I'm going to want to be sure I found the absolute perfect quilt. So yes, I'm going to go to the quilt category and look at EVERY SINGLE QUILT. First, I'm going to weed them out by sight. If they don't catch my eye, they're not investigating further. So then I've narrowed it down to the ones that interest me by way of looks in the thumbnail shot. Those are the ones I'll click on to look at the photos bigger, and I'll further weed them out by ditching the ones that aren't my style once I see the details. Then I'll read the descriptions to see what information I can gather about them. To some extent, I'll choose the one that's THE ONE based on how it looks, and to some extent based on the description. If there's a story, if there's a sense of humor, if I can discern a good personality in the creator, and yes, if I can tell a ton of work went into it.
Sorry I'm so verbose. This is a novel, I know.