The fragmentation is a disservice to consumers. If this move by Etsy leads for vendors to further disperse across some of the other options, then it adds even more barriers for consumers who want to see the full breadth of offerings in a particular vertical. It's unclear Google is really interested in or up to the task of resolving this.
(Shameless plug time.) So we built ATTIC, a hyperlocal search and discovery engine for a limited set of product verticals (furniture, decor, fashion). Etsy makes up a fair share of the product you'll find, but we do it in a curated manner, namely by location. Even more important though, we also index products from hundreds of other stores, dealers and makers that are on other platforms. We're quickly approaching 1000 stores, currently across 11 cities and several more to come. See https://attic.city.
In the end, I'm not sure consumers really care where they get their product from. They're not that loyal. They care about the product and the ease of getting the product. If vendors flee Etsy, the customers will follow. We're hoping we can eliminate the worry about or need to figure out where those dealers went.