The rule was placed so the community could swallow the pill. Once factory built products make it into the marketplace, it is a lot easier to gradually decrease rule enforcement over time, until you are effectively a niche alibaba, allowing factories to sell directly to consumers (they probably sold the board on that exact term)
Either that rule has been dropped, or is simply not (adequately) enforced, in my limited experience of Etsy. Unless "I order it, it comes in a boat from China, I list it for sale" counts as a perfectly good explanation of a process.
There are still many "proper" makers on Etsy (I know people personally who use the site to sell artwork, corsets & other dressware, etc) that are genuinely hand-made, but they are often undercut by those selling similar but mass-produced alternatives (that are usually lower quality, but people often don't seem to care about that until after they receive the product, and they then judge all on Etsy by that standard).