I stayed at the Hotel Monaco in Seattle and loved it. Nice rooms, leopard print bathrobes, free wine in the lobby in the evening and your own personal goldfish. Nice bath ammenities too. It's close to almost everything, we walked everywhere we wanted. If you belong to AAA you can sometimes get a good deal.
We didn't eat much in Seattle. Just came off of a cruise. There was this fantastic pizza place near the space needle...
It's tourist tacky, but if the day is nice, go to the top of the space needle.