I wouldn't call Seattle the most mustachian of cities, but when you look at rental costs vs buying, I think buying still has a pretty decent appeal. If you're looking at the Eastside, I'm not sure how much different the math is (probably not very).
I think if you want to settle in for the long haul (ie. 10+ years), than buy.
One thing I would keep in mind as you said you are close to FI and live mustachian: a big benefit of buying for a lot of people is the tax savings on interest/taxes (and in Seattle it can be a large interest & tax deduction), but if you are heading into years where you won't have a lot of taxable income, that can change the equation. If you're in the 25% bracket you are looking at several thousand dollars a year.
I sympathize with you on waiving inspections and contingencies, I don't think this is a healthy market. Unfortunately with the low supply, I don't see any reason for it to change. The 07/08 crash was telegraphed by the supply overhang, but right now, it seems like a simple supply and demand problem. The crash scared away builders from 2008-2013ish and it's tough to make up for it. Prices will be limited, eventually, by what a dual income family can afford in monthly payments, but with low rates and tech salaries that ceiling is high.
Of course, it's the future, who can really know.