Hostelling International Seattle
Offers free breakfast, free wifi. Excellent common areas including a library, tv room, computer room and clean, spacious kitchen facilities. The location isn't the greatest, given the grit outside, but it is near everything and just a block from Union/King Street Stations.
Panama Hotel
(http://www.panamahotelsea...). if you want a private old-fashioned room, modest but clean, with bathroom down the hall -- consider the historic panama hotel, in the pioneer square-international district. very relaxing tea and coffee house, with free wireless internet connections, on the street level.