Given my enjoyment of studio furniture, I've long associated the word craft with functional art. So when the words radical craft appeared in one of my del.icio.us feeds, I went investigating. The ArtCenter College of Design, which hosted an event on the subject, described it this way:
Stories from the Source: Radical Craft will examineadvanced craft as an antidote to slick mass production and mass culture in many arenas. From space explorers to fashion icons. From wizards to information mavericks. From social entrepreneurs to science gurus.
Core77 has a lengthy and thorough review, where Janet Abrams expressed a little
disappointed disappointment because the event "dazed" her rather than seriously ask how craft might be done in the post-industrial (digital) era of design and manufacture.
My take: serious craft, like serious art, proceeds as it always has, by risking failure. The required understanding and sensitive use of material must be matched by the personal investment. In other words, fail really well.