I disagree ... gently!
Cross-stitch is a form of embroidery, as is tapestry (also known as half cross-stitch). In fact, I've just checked the dictionary to be sure and it defines embroidery as any form of decorative needlework.
I have no objection to cross-stitch, tapestry and embroidery each having a subcategory under a category called Needlework, if you prefer? And I definitely think that needlepoint should be in that same category (I don't see why it is currently the only form of stitching to have its own category).
I think there should be one sub-subcategory under Needlework (or whatever you choose to call it) for accessories as there is some cross-over with needles, threads (floss), hoops etc., especially between cross-stitch and general embroidery.
And there could be a Completed sub-subcategory in each for finished cross-stitch, tapestry, etc.
Otherwise, I like delta's breakdown.