Great location, great history but overpriced on many levels.
We just stayed at The Edgewater- A Noble House Hotel this past wknd. 
The positives: The hotel is right on the water. If you pay for the ocean views, they are likely worth it, depending on what room you get. The restaurant is very, very good for quality of food, service and great views. The location of the hotel is ideal for walking to many of the must see sights of Seattle. 
The negatives: the hotel has a funky odor. The parking is $32 each night, which is totally ridiculous! The rooms are very, very small given the price point. There is a great deal of harbor/boat noise, sometimes in the middle of the night you can hear semi trucks backing up, presumably supplying the cruise ships. If you upgraded to an ocean view room, you will likely wake up to a cruise ship right outside, with cruise folks who can see into your room/onto your balcony. If you turn the fireplace on in the room, it gets extremely hot very fast. The history of the hotel is interesting, but I'd say the hotel is continuing to trade on a history that has lost some of its shine.
Downtown Seattle is a great place to visit and with the selection of hotels in the same area, I would choose to say elsewhere next time considering price and value. Though, I would go back to the hotel for a meal, for sure.