I've lived in downtown Seattle for the past six years and I agree with everything you've said, but it's also slowly changing. There are tons of apartments and condos going up right now in downtown, not the neighborhoods. But as you mentioned, there are still no schools, and these condos are intended primarily for 20-something Amazon employees who will get married and move to the neighborhoods (or farther) when they have kids.

Since we've moved from no one living in downtown to lots of 20-somethings living in downtown, I hope eventually that will eventually turn into people living and staying in downtown.