I lived in the East Village in the early 90's, when I was in college and before it got stupidly expensive. The neighborhood was a real dump back then, and Alphabet City was worse. It was really dangerous too. There were 24 murders in the East Village my first year there, and I saw the aftermath of a couple of them. I personally lived directly above a 60 year old female drug dealer who liked to sunbathe in the nude on the roof below my window while she blasted her music at full volume until 5 o'clock in the morning every night. My building was directly across the street from the Hell's Angels New York headquarters. Hey, they kept our block safe - nobody was gonna mess with them. I paid $594 per month for my roach-infested studio apartment.
I lived on 1st Avenue and 3rd St, the southeastern end of the East Village and one block over from Avenue A, the original namesake of this here blog and the frontier of Alphabet City. I worked for a while on St. Mark's place, traditional home of punkz & skinz and other counterculture types. It's the equivalent of Harajuku's Takeshita Street, for anyone who read my Japan trip report. My former place of employment still exists:

But this is one of the only stores left from when I used to live in the area. The whole street has gone Japanese! Every other storefront now is a Japanese restaurant or convenience store. Some are older than others, but it's clear that this area is now a mecca for New York City's large Japanese population:



These two places below were among the first in the area, and probably helped attract a lot of the Japanese population:

I love Village Yokocho, and I love Japan, but honestly, I don't know how I feel about this outright takeover of a street that holds such a history for me. I am honestly not really in favor of globalization. I believe in cultural uniqueness and distinctiveness; I believe it's important to preserve that, especially as it's so quickly being lost around the world as time marches on. And just as I am a little put off by the rampant Americanization of Japan (and frankly many other countries), I am also a little put off by the Japanification of the East Village. It's not that I don't think there should be any options for Japanese ex-pats living in the US, but there comes a point when it's just enough already. The long-time residents of this area must be feeling a bit like outsiders in their own neighborhood right now. I know I feel like an outsider when I visit there now, and it's not because I've changed - it's because the neighborhood has.
(Oddly enough, I feel more comfortable in Japan itself.)
If you're curious, the biggest concentration of Japanese stores and restaurants is outlined here:

Here's an entire block of historic low-rise housing that's been torn down to make way for high-rise condos:
So, probably the question some of you googling the East Village came here for is whether or not there's still some good night life and cool people around. The answer is yes and no. There are still a lot of bars, including most of the ones that existed when I lived there. There are not a lot of clubs left - not that there ever were a lot in the East Village (it's a bar area, not a club area). Most importantly, CBGB's is gone - which was the heart and soul of that whole neighborhood. Even mayor Bloomberg recognized that, and unlike Giuliani before him (who tried to kill all the nightclubs), Bloomberg tried to save CBGB's. But he couldn't. Damn shame.
As for people, the punks are not what they used to be - they're way more Green Day than Ramones or even Black Flag these days, and there aren't as many of them around. A lot of the people in the area are Japanese, as you might imagine, though a particular kind of Japanese, so you may get the wrong idea if you visit. They're people who have come here to try to get away from Japan. Really the same reason a lot of people used to come to the East Village - they're trying to reinvent themselves, to get out of whatever rut they were stuck in back home. So they look different and they act different from most of the people I've met in Japan. They're not strictly counter-culture, though - you won't see many Japanese punks. They're just people looking for a new start.
Now, a lot of you from outside New York are probably basically familiar with the Village but you may not really know much about Alphabet City. First, let me say that they are not the same - there's been a movement among realtors and marketers of various products to use the term "East Village" to also blanket Alphabet City, but they are wholly separate neighborhoods. (My guess is "East Village" has some cachet now, whereas Alphabet City doesn't yet.) Here's an outline of its rough borders, and some people may draw them a little differently, but the important part is that it includes Avenues A-D, the only lettered avenues in Manhattan:

If you want to see what this neighborhood was like back then, rent or buy the DVD of the film RENT - it says it's set in the East Village, but as I mentioned above, that's wrong; it's set on Avenue A and 11th St. It's uncanny how right the film gets the atmosphere, even though the actual street layout is completely different.
In fact, one of the themes of RENT is the gentrification that had started in the early 90's (the film's time period is also wrong; the play is set in the early 90's), and the resistance many of the area's residents put up against it. Look at this shot of picturesque and peaceful Tompkins Square Park, for example:

The gentrification was an unstoppable force, though, and it's now almost complete, in both Alphabet City and the East Village. Both of these neighborhoods are now safe, much more upscale than they used to be, and lacking almost all of the character they used to have. There are positives and negatives to gentrification, but overall I consider it a net negative for the sole reason that New York City doesn't need another Greenwich Village. What it does need is to preserve the uniqueness of all of its neighborhoods. It's why people come here, after all.
Here's an example:


The Japan binge has also extended into Alphabet City now:

With all the "regular" people who have moved in, there are still some signs here and there of the creativity and vibrance that used to define these neighborhoods, even above the squalor. This fence caught my eye - not because it looked difficult or even especially inventive, but because somebody actually looked at this fence and thought, "black should not be the color of this fence. This fence should be cheerful and fun and even if it costs a little more and takes a little longer, we're going to make it happen."
