My only concern about something crafty is that you have to really work to find people to buy them. Once you find a customer and sell one thing, what will make that customer buy again next month?
You can go to craft shows but these are heavily stacked in the fall for pre-holiday sales, and you will have expenses for a table rental space and sometimes entry fees. Many shows require you to donate one item for a raffle so you might get an appreciative recipient but then they don't need to purchase anything else from you. With the economy the way it is, people are cutting back on these extra and unnecessary purchases.
I don't do sales either. I teach and do customer service, which is great for me. I do it as little or as much as I want. There are honorable MLM companies and some have better compensation plans than others. There are scams of course but there are some simple and great ways to sort them out. Some companies (the best ones) have products that people keep buying even in tough economic times. They don't need kitchen gadgets or jewelry or candles but they do need quality products that they can't buy in a supermarket. The 2 most recession-proof areas are nutrition/wellness and beauty products, with beauty being a little less reliable. I would not get into anything that requires you to have parties - it's tough to get people to host parties these days, and guests don't want to attend when they are expected to purchase something.
You should look into something that is consumable, that a person will need month after month. Otherwise you will be looking a lot for customers to buy your crafts - if that's not sales, I don't know what is.
Be careful of data entry jobs too - there are many scams out there. Same thing with things like envelope stuffing and preparing mailings. I don't know how much work these days is given to people to work at home, with so many people out of work and looking for temp jobs. Companies can pick and choose because there are so many highly qualified people willing to take almost anything. Your best bet in this area is to find someone you know at a company and see if they have work they can delegate out - accounting, maybe. You're going to need to network among people you know in order to find someone to trust you to do work whenever you want to - as little or as much as you want, as you said.
Babysitting and dog walking are possible, but those are still going to be on schedules and not necessarily in your home, which is what you want.
Good luck and let me know if I can help.