I have lived in the Seattle area for decades, and the University District is a really facinating place... there's everything from Ice Cream parlours (Cold Stone Creamery and Haagan Daaz) to little east indian clothing stores, a footwear place that sells Birkenstocks and 'non leather' shoes for vegans, a lot of asian food places- tiny little shops, no more than fifteen or twenty feet wide, and a good 60 or more feet long! There's Bead shops, and 'alternative' clothing shops (doc martens, vinyl coats, tie-dye or vintage clothing, that kind of thing) and even a little shop that sells nothing BUT gargoyles. (think i'm kidding? heh! check out http://gargoylestatuary.com/!!)

Away from the U-district, but also of local fame among the UofW students, would be Archie McPhees: http://www.mcphee.com/ VERY fun to drop by- and it shows you the sense of humor and style that a lot of the little shops play on, in the U-district, even though Archie McPhee's is now located in Ballard- most of the bookshops and gift places will carry SOME of that kind of fun stuff. :)