When I do buy things like crafts, I try to avoid the middleman and buy directly from the artisan to put more money into his or her pocket. You'll pay more, but it's for a good cause. The hardest thing to do is to buy souvenirs for friends and family. It's not as if they were on the trip with us. What might seem important to you is probably meaningless to them since they didn't share the experience.
Art is the most awkward gift to give other people.
Not everyone knows art, but they know what they like and no two people like the same thing. What you think is an excellent example of primitive wood carving, may just be a tacky embarrassment that only gets pulled out of the closet when you come to visit. If you want to buy something for someone back home, buy them something practical. The best souvenir for other people might just be a postcard. Everybody loves to get postcards.