Working out of Albuquerque, artist Lex's Etsy shop, Gjurasic Park, is a great introduction to her work with Kokeshi, something I hadn't heard of before. I love the bold colors and strong designs. Check out her blog for more info and artwork.
I actually stumbled upon Design Warehouse without realizing it was yet another Southwest discovery (they're based in Santa Fe). They have a great collection of everyday design, from the pricey to the affordable (also they are having a sale on lighting through the end of November!). I like the Farmer's Market Calendar, the Magnetic Organs, and the Stuck Up Magnets, for example. Push-Up Preston (above) was another winner.
Gridskipper relays the excellent news that getting to and from Santa Fe and Albuquerque has just gotten easier: "Come the fall, Santa Fe gets its first commercial jet service, not to mention Rail Runner Express will soon offer high-speed train service from Albuquerque. It’s good timing, considering Santa Fe currently houses a burgeoning art scene - epitomized by its 7th annual biennial and the Santa Fe Opera’s renowned summer festival (now in full swing) – and, as of August 1st, will welcome a new Auberge Resorts retreat, Encantado." (from Globarati).