Then you shouls stay at the Olive 8. They are both extremly close to the market. As oe poster said, staying in Bellevue is like going to DC and staying in Bethasda. At the Olive 8 you'll be within walking distance to all of downtown Seattle and in a brand new hotel.

If you are afrid of the food at Ivars but still want to be on the water, try Elliot Bay. I think it is a bit overpriced but the food is always great. If you don't care about the waterside, then there are plenty of great resturants in Seattle within walking distance. PM me if you want suggestions.
Have fun! We live near the market (though now in Vietnam) and love it.