the OED defines 'craft' as "an activity involving skill in making things by hand" and 'art' as "works to be appreciated primarily for their beauty or emotional power". given that art is made by hand this distinction between art and craft would seem to be no distinction at all. the difference to me would seem to be that craft objects have some level of functionality above and beyond the aesthetic or narratively illuminating or emotionally edifying and yes, that they are handmade. function is often quite humdrum and domestic - a box, a frame, or whatever - but the levels of creativity and finish in crafted objects can be quite impressive. and this is what i aim for.
there are several craft categories -
* picture frames
* games & toys
* other craft objects