Well, all's well that ends well. The seller who copied my item and description is no longer selling it. I'm not sure whose decision it was to remove the item, the seller's or Etsy's, but for now, it is gone.
We'll just have to keep an eye out on other handmade sites like Artfire, etc, to see if she decides to be all thefty over there ;)
Thanks again to all of you who helped me to deal with this in a responsible and adult manner. Left to my own devices, I'd probably have done some really bad stuff and gotten myself kicked off of Etsy, lol. You guys are the BEST :)