Thanks for your helpful advice, mate. If am not really into night life so living right in Seattle wouldn't be my priority. It sounds like Belltown is a decent neighborhood based on your description.
Belltown actually is kinda sketchy at night these days. South Lake Union has a much safer, 'yuppie' feel to it. For something a bit quieter you might consider east of the lake. There are also some nice neighborhoods (not sure of prices) closer to the university that would still be a nice short commute.