I am lucky enough to have visited Chiang Mai a number of times and always found it to be a city that is well worth a visit.
It is only a short (cheap) flight from Bangkok and, whilst it is still a city it is only a fraction of the size of the capital. The benefit of that is that it offers a different type of experience from the more commonly seen parts of Thailand, namely the beaches.
There are a few sights to see in the city but the main attraction is the impressive Doi Suthep temple on the mountain overlooking the city. You can easily get a taxi there or go on an organised tour through any number of operators who will collect you from your hotel. Often those tours will return via a never-ending series of handicraft shops which is ok once but a nightmare if you have seen it all before. Trouble is you can't say that you don't want to go there if there are others on the tour so if you really just want to go to Doi Suthep book your personal tour (it's not that much more expensive and you will get your own guide and driver).
There are a range of other excursions from Chiang Mai including a number which will take you on elephant treks through the jungle. Most of these give you the opportunity to travel in a cart pulled by buffalo and/or go rafting (gently) down the river as well as on an elephant ride and are most definitely worth going on. Most folk do not get many chances to ride through the jungle on an elephant so just do it!
In the evening the Night Market is a must - lots of the usual fake shirts, watches, bags etc but go to the bazaar where there are loads of food stalls serving all sorts of Thai delicacies. You buy a book of tokens and then exchange them at whatever stall you fancy. The food is absolutely superb, everything (as you would expect in Thailand) scrupulously clean and amazing value. We reckoned we could eat fantastically for about £3 each, sitting in the open air listening to the free entertainment.
While in the Night Market it is also worth experiencing the agonies (it can be painful) and delights of a Thai massage. Best place we found was above the McDonalds restaurant (recommended in Lonely Planet). If you have never had a proper Thai massage don't imagine it is sleazy or unprofessional. You wear cotton "pyjamas" and have your feet washed by the masseuse before she tries to part muscles away from your bones! It can be sore so be careful if you have a dodgy leg or some such but the relaxed feeling afterwards is well worth it!
Accommodation-wise we got a good deal at the Amari Rincome (4 star with excellent pool, good breakfast) but watch out as ever for over-priced hotel restaurants. Use the red taxi buses to get around or flag down a tuk-tuk and enjoy a real Thai city.
And finally, we felt very safe in Chiang Mai (unlike Bangkok) maybe because the people are so friendly.
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