Seattle has plenty of high vantage points where you can get great views for free. Most of those views include the Space Needle, while of course you can't see it once you're in it.
If you want a surprisingly good meal (lunch is the better value) then having it at the Sky City restaurant at the top is the way to go; the elevator and observation deck are comped (but there's a minimum of $25 pp for the meal, $35 at dinner.)
But if you just want a good view, look at Kerry Park on the south slope of Queen Anne Hill, or anywhere along the West Seattle waterfront or from any of the ferries, among many alternatives.