Hi there, WOTWW,
I really don't know from anything about the lore of the weeping heart or the mildly sniveling heart either, for that matter.
But that pouch, I do know.
At some point in time, we decided that we needed to produce a fancy, "Sunday go to meeting" pouch and that is what we came up with. The only real significance of the heart is that considering it was made in Coeur d'Alene (coeur = heart) we included that piercing and it was the most pleasant heart shape we knew of. Much better than a Valentine heart. And, of course, we called it the Coeur d'Alene bag.
We also offered that bag in a couple of different variations. Totally plain with no piercings on the flap, just the scallops, just the heart, and both heart and scallops. I also came up with "John's special bag" which included an extra divider inside with more pockets on it. That made for several thicknesses of leather and the ladies we had sewing really didn't care for that at all.
I think we did a star instead of the heart and even did some custom versions with buffalo and other cutouts.
To this day, I believe that was the finest bag we ever produced and when I take my pouch out my breath still catches, just a bit. It is a wee bit fancy for my taste, but still...
That's about all there is to it. We did take the drawing of the heart from some drawings we found somewhere in one book or another. The book is in a box along with many others in our storage locker in Coeur d'Alene. Wish there was a more fascinating story behind all that, but alas, there isn't.