Jason,
I don't know what field it is that you are looking, I'm guessing computer technology. But I will say, as a hiring manager in my group (in engineering), I usually decline folks from out of town an interview, usually because they are either, as you say, overqualified, or are trying to escape an area that they have already burned all their bridges. Unless it is a management position, or we have no local applicants, we try to keep it local... so keep at it...

regarding making a nice life in the northwest... you can still buy a waterfront home in kitsap for less than the going rate for a dump in king county... Many companies in Seattle offer flexible work hours that allow you to work on the commute or at home and will even pay for your commute... In my case, I get both, so I'm essentially getting paid to work on the commute...

get in now where ever you can, because as sound transit expands and shortens commutes, house prices will go up.