For sure there is some kind of assumed hierarchy here: fine art being higher, more spiritual more la-de-da if you will. Craft is often viewed, in relation to fine art, as being lower, simply functional. I believe these lines are often muddled and distort the whole glorious picture of made by hand.
For me the intention of visual art makes it different from the intention of craft. Unless an artist is primarily out to display technical mastery, art generally serves to illuminate something within or without, to express things that are difficult or impossible to express verbally, to engage a whole being, or to challenge. Art deals with shadow and light. Craft is generally unconcerned with such somber realms, since its main purpose of being is to maintain functionality. A leaky but amazing teapot will not be welcome in most circumstance.
Craft typically produces something useful and can be quite beautiful and reflective of sensitive hands. Typically the craftsperson aims for high quality. Craft goes way beyond production needs.
Many people operate on the assumption visual art is a luxury and possibly pretentious—it’s an extravagance not normally figured into most household budgets. Fine-crafted objects can serve a purpose and function and are more likely to enter one’s home. Well-chosen crafts will become more of a physical experience: you will handle them, wash them perhaps, and enjoy using them in some daily or ritual routine.
So what?
I believe all people need to have their aesthetic senses tuned and heard. It maintains our joint humanity and addresses living fully. Sometimes other culture forms—music, dance, theater, literature, etc.—or nature will temporarily fill this vacuum. Yet well-chosen art additions to your environment will consistently inspire new paths, ideas, conversation, meditation, reflection, memory, and contribute a special and personal aspect of beauty. Art will engage all your senses and enrich your life experience when chosen well: that is from the heart/mind/soul, honoring one’s unique and special being.