I would say Soho/Tribeca/Chinatown area.
The small art galleries, the small boutiques, the luxurious boutiques, creative art studios, dinky pearl river mart with cute goods, kates paperie, small artistic tables with goods, cobblestone ground, and magazine publishers, etc.
I absolutely hate hate time square/ 34th street. It's such a tourist area with a whole bunch of tourists. And so much Hotels.