Well, I haven't been ignoring your question Gret... I've been umming and arring and biting my nails, and wondering how I on earth I can put it politely... Wollongong doesn't really seem to have that scene going on at all. There are markets and craft things happening from time to time, but not in a funky, vibrant, young people kind of a way...
There are some art things happening, there's a nice simple contemporary gallery called 'Project' in Keira St, right behind Myer and the skate park in town, and there are markets happening every Friday in the mall in Crown (the main drag), and they are good in terms of yummy Thai and Indian food, and there is an awesome gozleme
They've just started markets on a Saturday and Sunday in Flinders St (practically the highway), near North Wollongong station, but they are small, and more of the Paddy's markets variety than anything else.
What I can recommend...
Relax, forget about shops, and concentrate on sight-seeing, picnics (if the weather is good), and that kind of thing. Gerringong, Kiama and Jamberoo are lovely, they are a little south of the 'Gong, and the drive there is awesome, green rolling hills, it all used to be rainforests before colonisation, and they do have markets once a month... (click here for details, this guide is usually pretty accurate). To the north is also pretty cool, places like Stanwell Park are pretty and they have some nice cafes and art galleries.
The Botanical Gardens are also awesome if you're into that type of thing (and I am), you can sit for hours, chill and/or explore!
Other than that... Wollongong is a very industrial town, with extremely high unemployment, particularly youth unemployment. It was built on the steel works, which is downsizing constantly and has been for as long as I can remember. It has its upsides, but it certainly has its downsides... and if it wasn't for my postgrad studies, I wouldn't be here at all...
If there is some mysterious craft scene that I am completely unaware of, I am happy to be corrected, because I'd love to join in, but I've been here a little over 2 years, and I haven't seen or come across anything like it yet.
Well, there we go... I said it!
Any fun suggestions for Gret, and for me, would be totally welcome!