So here are some thoughts to wrestle with...
There's some good points being made here all around. The fact that you guys are finding multiple categories fitting a product really highlights a broken taxonomy / categorization structure on our end.
Good taxonomy and best practices dictate that categorization should be as close to unambiguous (read: only one really fits the description) as you can get, with further identification/listing through facets, tags, or other means. Discoverability of products that fit a theme across multiple categories (ex: "holiday", or "wedding", and so on), should be shared facets across categories.
This problem also exasperates other issues, such as popularity and sort order inside of each category.
Some examples of that would be:
* A product (listed in: art -> sculptures, and jewelry -> pendants) was purchased by someone. Which of those categories should the product receive plus weighting in terms of popularity/relevance/etc from the purchase?
* A product is primarily considered to be Jewelry, but is listed in Miniatures also because someone thought miniatures gets more views. How do we prevent the abuse of discoverability (read: implied sort order) without a firm sense of understanding of what the product actually is?
---
The list goes on. I think that the fact that neither you nor us are happy with the structure and system that is in place is a great indicator of a need to do something that fundamentally works better for all parties involved. And that's what we would like to do.
As Andrew said, the start of that means getting a better sense of what products are available, and where the categorization truly breaks down, and then beginning to improve, expand, and/or restructure the category taxonomy along with finding the right solutions across the board.
Also, like Aimee said in the first post of this thread, this will be a continuous effort that will involve multiple iterations before we "get it right".
After all -- user generated content categorization of products is actually quite "hard"