Favorite thing: Walking the streets of the old German Colony can give you a glimpse of the life of the immigrants to Israel. These German immigrants built a "colony" or neighbourhood around themselves to help them cope with a new life in a new country, a way to insulate themselves and instill a feeling of "the old home" while beginning a new home. You can see many of the original buildings and some of the Eucalyptus trees planted there are impressive.
Favorite thing: Visit the German Colony in the lower city. Here you'll find beautiful, reconstructed, 19th century houses, built by the German templars who had lived here. The German were sent to exile in Australia by the British during World War II. The entire area is now reconstructed and is full with cafés and restaurants. Looking up, one can see the amazing Bahai Gardens and Shrine (see travelogue). You can find more information in http://www.tour-haifa.co.il/Eng/germancolony/index.phtml.