The packwood site really is the best we have in the area. It's large, in good condition, and offers many course options, including the potential for Pro Solo. When grid/start are off to the side, it provides excellent viewing for spectators. It's about equidistant from Portland or Seattle (2.5 hours).
Around town, there isn't as much to do as in Bremerton\Port Orchard, but you're right between the two best known mountains in the state (Rainier and St. Helens) with plenty of outdoor recreation available. Just about anywhere you go there's fun roads to drive. There should be a reasonable amount of lodging available in Packwood, Randle, or a bit further out, Morton. I've heard most of Packwood is already sold out, so there's some people coming. Dining is small tourist town fare. One reasonably nice restraunt, a pizza place with good pizza that gets overwhelmed with large numbers, and of course several bars. I'm from a small logging town myself, so I rather like the area.
An aerial photo of the site - http://www.wwscc.org/images/packwoodair.jpg. The large building at bottom center is the paddock area.