Well I found this link http://userpages.umbc.edu/~korenman/wmst/knitting.html where apparetnly I already did. I don't know why I got discouraged from writing about knitting for my thesis but I've been thinking about it for 4 years now.
Here's a link to someone who is doing a documentary on knitting/craft as a cultural explosion. It's mostly, white, hip, young women as far as I can tell. The clip shows no people of color, no one doing craft as a means of economic necessity (AKA poor folks) or crafts as a means of therapy/learning/social needs.
This site looks promising as a combination of craft and activism and has lots of links to other sites combining crafts with different forms of activism/education/social concerns
I'm starting to build a bibliography of articles and books that I will list later. But for now check out this sorry attempt at felting!