The falls you have pictured is Multnomah Falls. There's actually about 5 huges falls in that general area next to the one you have picitured over a 5-7 mile area and you can hike to the tops of all of them and all the falls are connected though hiking paths.
If you would have taken the road "Historic Columbia river hwy" that goes under the falls picutred(runs pararal to the Interstate I-84 you were on), you would have had some of the most beautiful views of the gorge area.
Cannon Beach is where I proposed to my wife, it's a beautiful place and is a very laid back town, great place to unwind. Haystack rock has tide pools so in low tide, you get to see all kinds of marine wildlife.
About the hippies, well they're here to stay, you haven't seen anything until you walk around inner city portland. I love my state but the big cities are over run with them.