Etsy's New Guidelines - Allowing Mass Produced, Factory Made Items?

A few days ago, Etsy made a huge announcement regarding their policies. Essentially, store owners can now use outside companies to manufacture and ship their goods (also known as drop shipping), just as long as they had a hand in the original design.

If you want to see the fallout on Etsy, check out the new forum section that they've created just for this huge change.

I'm not one of those Etsy sellers who are militantly scanning other shops to see if they are "handmade" enough for my liking (yes, these sellers do exist). However...let's be honest.

How bad was the demand for this new guideline? How many Etsy sellers are so extremely successfully that they need outside manufacturers to help them meet demand? So the real question comes to...

What is Etsy's true motive?

Personally, I have no doubt that it's to make a substantial amount of profit from stores who have the capability to process thousands of items at a time, where your typical handmade store usually can only produce a very small amount of items at once. 

I am concerned that factories will take advantage of this and flood the search results with cheaply made, mass produced goods. There are a ton of straw-man, doomsday theories out there, but this is probably the only one I find to be a real concern. 

What do you guys think about Etsy's new guidelines? Do you plan to stay on Etsy or perhaps try another site like Zibbet?