See, that's the thing. When I moved back to Seattle, it took me FOUR YEARS to ever hear anybody say the name of that city. If you don't watch statewide weather forecasts, it never comes up in conversation for any reason. Ever. Sequim is tiny, and hours from Seattle. I was born in Seattle, though moved away at the age of two, so it's not like I remember it from then; but people in Sequim have this ridiculous notion that everybody that "lives here" knows how it's pronounced, when in reality, the rest of the state doesn't care.
Now, that comes off as way more smarmy than I intended it to be; but early on in my current job (which I started in spring of 2004, a little less than four years after I moved back to Seattle) I had a person on the phone that lived in Sequim and was a real estate agent in that area and they were having a problem finding listings, and when I was verifying her search criteria back to her, I paused at the city name of "Sequim"; I had seen it on a map before, but never had cause to say it, or heard anyone else say it. She said "It's pronounced 'Squim'; I guess you just moved here, huh?" My response was "Well, I've lived here for four years, I guess I've just never heard it pronounced before." What I thought in my head was "Who the frig cares about your small, irrelevant town? There's no reason I should know anything about it." Her response really annoyed me.
She acted like Sequim was some big tourist destination, or important city, or something. I doubt the "Sequim Lavender Weekend" is reason enough for the world to know of it, lol. It's a small freaking town in the middle of nowhere on the peninsula with 6,600 people. I'm sure it's lovely in its quaint charm. Expecting the whole freaking state to revere it is just elitist as all hell, though. Left a bad taste in my mouth for the residents of that area, if she's any indicator.
The fact that Seahawker also thinks anybody that lives in WA automatically knows how to pronounce it correctly suggests my assertion may be rather correct, though...

(Don't get me wrong, there's nothing wrong with correcting people on how to pronounce your home town; but as I said, that experience left a bad taste in my mouth.)