Aboriginal folk art is a big market but it's a narrow market and artists of other ethnic groups are basically prohibited by social convention from working in those styles.
When I left art school in 1988 it was possible to eke out a living from our craft because there were plenty of small galleries and craft shops who would take work on consignment, usually at 40%.
I didn't sell many of my ceramic pieces and drawings and ended up going into building because I was sick of being poor but the opportunities existed and people I know kept at it, though none of them are now still practising. The prospects for selling utilitarian wares like I was making were always better, back then tourists would pay $1200 for a hand thrown stoneware dinner set with a nice blue glaze but the sculptural and decorative pieces were always slow sellers.
Gentrification killed a lot of the store front retail in the inner city "Bohemian" suburbs and the craft shops with it, I don't know what the situation is in country tourist areas like Daylesford or Port Fairy, I imagine there's still somewhat of a market for arts and crafts but in the city it's a shadow of what it was 25 years ago.

Peter, thanks for the pointer to Scruton, he has some interesting things to say. It's really good to see the stranglehold of analytical philosophy being somewhat loosened in the English. It's been responsible for a quite extended period of stultification in English philosophy it seems to me.