So why is Everett SO horrible? And yes, this is a serious question. Is it the people? Nothing to do? No night life? Shitty places to live?
All of those things and more. There's nothing to do there; the people are generally sour and unwelcoming; lots of drugs and lots of low income housing; I've never heard anybody use night life and Everett in the same sentence. My family and I call it Everot.
If you're not into the bar scene, I would still check out Ballard or Fremont. Lots of parks and beaches nearby, generally friendly people, and a near-infinite amount of food choices. You'd also be in close proximity to Seattle and everything it has to offer in terms of sporting events (Seahawks, Mariners, Sounders) and concerts. And if you ski or snowboard, it's about 40 minutes from Ballard to the chairlift at Snoqualmie or Alpental.
I get the city life thing - but I'm having a bit of a tough time finding something halfway big for $1400-1600 that's nice.
FWIW, I'm in a 3-bedroom 2000 Sq. Ft. town home in Ballard that's $1895 / month. You can find nice apartments around here at price points well below what you mentioned above.
How does everyone feel about Lynnwood or Kenmore?
Parts are nice. Check out Edmonds as opposed to Lynnwood.