Sylvie suggested “transcendental craft” as a name for this.
Judith left a comment that added What you wrote about is a sort of art therapy, where we can express ourselves in ways that help us heal. I know knitting means a lot to me, helping me center and relax in the midst of stress. However, I think sometimes helping others will allow us to open wounds and heal ourselves.
And around the web regarding craftivism-ishness:
Heather who’s been tearing it up over at Counter Craft wrote an excellent post called Adventures in Mindmapping Craftivism *and* then let me know about this sweet post over at Trend Tablet called When Design and Craft Meet.