I have some cheery news on this front.
The Little Cheerful in Bellingham changed hands about 18 months ago, and all is for the better. The place was renovated, and the menu updated. The food is better and more sophisticated than of old, while the new owner makes everyone welcome.
The Little Cheerful is in downtown Bellingham, at the corner of E. Holly and Railroad. There are some other good places on that block of Railroad, like Avenue Breads and the Bagelry, but I think that for a solid breakfast The Little Cheerful is the clear winner.
I have not yet tried Totem Family Dining in Everett (4410 Rucker Street), but that sounds like another likely prospect. Any of you know it?