I just had to make a photo of this area: the colours are almost shocking pink, a colour rarely used elsewhere in Taroudannt. The Arab market is the main area for touristic shopping, but it has a relaxed feeling compared to Marrakech.
Taroundant is well known for the high standard of its handicrafts, and in most cases reasonable prices. While there is just as much need to be careful in your haggling here as anywhere else in Morocco, Taroudannt might still be the place to do most of your souvenirs.