1.) architecture. old and new. check out the frank ghrey "fred and ginger dancing building" on the river. plenty of art deco, too
2.) cheap, excellent food
I'm sure there are many more, but i'm tired.
I was there in august of 2002, right after the big flood that relieved dresden of a train station. the water marks near the river were at about 6'. the jewish quarter was closed, but i hear it's the best in europe.
i'd second the remark around renting a car and getting out of town. there are still remains of soviet influence, but mostly in small cities surrounding prague.
enjoy your trip! let us know how it goes