Where you want to stay depends on what you want to do besides the Palooza.

If you are in Seattle, or near the airport, you are close to the Boeing factory, the Museum of Flight, Seattle Center, Pike Place Market, Seattle Art Museum, Archie McPhee's, the Mariners and the Huskies.

If you stay in Poulsbo, you have no smog and you have free parking: you are near Liberty Bay, Dogfish Creek, the Canal, the Olympic Mountains, Dungeness Spit, Port Gamble, Point No Point, Toe Jam Hill, Kingston (which includes both Nike Park and Appletree Cove) a llama farm, the Naval Undersea Museum, the Marine Science Center, kayak rentals, The Rolling Bay Hay and Feed Store, and more rustic, rural stuff than you can shake a stick at!

I love Seattle, and I am glad that it is only a thirty minute ferry ride away from me, but I am glad that I live on this side. Can you tell?