Is "Handcrafted Leather" real?

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Indeed, you are wrong. "Handcrafted leather" means that the artisan acquired raw leather and then "crafted" it. This can mean any number of things: tanning, dying, printing, tooling and otherwise altering the original "raw" leather into the finished product. It means that the product was, at some or all stages of manufacture, built with human hands rather than at a factory.

Elnoa's right. And imitation leather is usually called "faux leather" or "leatherette".

Leather can have funky and smelly dyes / finishes, so maybe that accounts for the smell.

Additionally, it doesn't take much to call something hand crafted these days, so it isn't exactly a guarantee of quality either.

I think sometimes that that is correct, however, I also disagree with that. I have a friend who's dad does leather-work. He makes shoes, bags, gun holsters, etc.

The way to tell if they're real leather or artificial is to do the "pin test". You heat a pin in a candle flame, then apply it to the leather, if it goes through without you pushing, it's artificial leather, if it doesn't go through, it's real. Faux leather melts.