Thanks Shizelbs, you've been very helpful. I took a look at hotwire and you were right, there ARE some really good deals. My concern with them, however, is that you don't know which hotel you're getting and are also not allowed to cancel or change your reservation. Have you used them before? Are their star rating and descriptions accurate?
I really don't know what there is in Tacoma specifically, but my friend has heard people talk about how they liked it there.

That's why we were thinking a hotel near there might be nice. But if it's an hour away from Seattle, I think we'd have to look elsewhere for sure. You mentioned Redmond/Bellevue; how long would a commute in the city during morning rush hour take? Also, are there specific sights to see in that area?
We are basically interested in the regularly touristy sights, such as the Speace Needle, the Underground city, etc. I think we will end up getting that city pass that includes admission to a bunch of those popular sights. Would you recommend anything else in particular? Personally, I love scenic things (e.g., mountains, lakes) so if there is anything nearby that would be great.
Also, we basically eat any kind of food. Thanks for the steak suggestion; any others would be great too.