I just found the Craftzine blog, and I'm enjoying the links they post. Some cool recent entries:
Use plastic bottles to create underwater sea creatures
Make edible googly eyes -- I love the creature they show in the picture.
They also linked to a Crafter's Manifesto, an effort by Ulla-Maaria Mutanen to figure out what is driving the popularity of craft. I think she makes some excellent points about how crafting creates a sense of satisfaction, communities of practice, experiences of play, etc. I may just need to print this one out to hang on my studio wall.