Never give up, never surrender.
With any luck this economic climate will come full circle at least to some extent and buyers will need their handmade goods again when the more intelligent ones get sick of wallowing in digitized soulless non-art. Also don't blame yourself, at least you had the courage, unlike myself, to have faith and throw your lot into your art whole-hog. I've always been an artist on the side working a full-time+ job that I totally hated (past tense now) and sucked my muse dry of energy and inspiration like a vampire.
The situation for artists in the world, as illustrated by others above, is just not good for us at the moment. Some places of the US are certainly much harder to carve out a survival living than others. My instincts tell me things will come full circle eventually, in our lifetimes even? Perhaps. Until then, what can we do but support ourselves as best we can, so we can continue to develop and express our gifts for our own sake?
For the record I've given up the idea of selling at physical locations entirely and plan to only be listing my work for sale at internet venues in future. It fits better with my lifestyle and semi-professional approach, but some people work it quite successfully into full-time careers.