With all the rain Seattle gets, why is widespread flooding relatively rare?
Regarding climate, it does not rain in Seattle as much as people think; Seattle is in the snow shadow of the Olympic Mountains. It doesn't rain much in summer at all. Seattle gets rather dry in July and August.
Regarding flooding, the Skagit and Snohomish rivers north of Seattle flood regularly experience flooding. Some of the land in the flood plain is used for farming, and there are scattered households in the 100 year flood plain.
Regarding drought, drought severity is relative to the amount of precipitation and soil moisture levels typical for a specific locale. This means that even a rainforest can suffer drought. Because it's a relative concept, the rainfall during a drought in a rainforest would be a rainfall bonanza in arid climates.
Regarding forest fires, the Seattle area occasionally undergoes offshore flow. This occurs when the air pressure is lower in the Seattle area than it is east of the Cascades. This makes winds blow from the east, and if there's a forest fire east of the Cascades (which has a rather dry climate), that smoke can be carried westward toward the Seattle area by the offshore flow. That said, wildfires have occurred on the western slopes of the Cascades, and sometimes even in the temperate rainforest to the west of the Seattle area.