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My Seattle living experience is dated at this point so no real advice.
It is a relatively easy public transit commuting city (the bus tunnels remain one of my favorite things ever) so if your recreational habits will take out out of town more than downtown I'd say don't rule out the north or south suburbs (do not go east unless you work over there).
Queen Ann Hill is a very nice neighborhood, but I have no idea what kind of urban environment you prefer. Personally I like something a little bit grittier.
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