One correction - WSDOT does not get their budget from the City Council - WSDOT gets their budget from the feds. The City has little to do with transit. It is kind of long, but this document from King County details how decisions are made and where the money comes from http://www.metrokc.gov/kcdot/tp/subareas/orientation/Jan8FinalTransportation101.pdf
For the record, I am a transplant, but from Western communities with far worse or non-existent public transportation. However, I have come to love using it and use it more than my Seattle native boyfriend (in his defense, his job keeps him from it).
I live in the Admiral District and feel I have a nice selection of choices to get to the Junction or to my job downtown. They could be better, however - and the commute for a friend in the southern part of West Seattle is insane. She has few options and crazy times.
I do agree that there is a lot of talk and not enough action. There is a saying that the good choices often get lost in the search for the perfect - and I think that is an ongoing problem with transportation.
The bad news - it takes a lot of money to get this going. Unfortunately, federal transportation funding will probably be cut next year and current taxation structures are hurting locally.