Yeah merino is pretty killer stuff, wool is antibacterial as well so it won't stink up. Comfortable to sweat in and it'll keep you warm as it's drying. It especially shines for mulit-day backpacking use. The good stuff is the lightest weight, baselayer weights (150 gram). Expensive, but I think worth it.
I wouldn't bother with anything above that for merino, not even the 200 or 260 gram stuff, as fleece is cheaper and warmer in that area.
I"ve been really happy with the MEC Watchtower fleece pants:
http://www.mec.ca/AST/ShopMEC/MensClothing/Fleece/PRD~5017-968/mec-watchtower-pants-mens.jsp and MEC Trek 4 jacket:
http://www.mec.ca/AST/ShopMEC/MensClothing/Fleece/Tops/PRD~5022-813/mec-trek-4-jacket-mens.jspI like eVent fabric for waterproof breathable as well. Kind of the gold standard I'd say, though very expensive. As an alternative, the driducks ultralite 2 at $15 for jacket and pants is really effective for keeping you dry and it's very breathable, just not high fashion and a little fragile (nothing duct tape can't fix).
For waterproof breathable, down, any high performance fabric I use the ATSKO Sportwash and their water resistant re-proofer. $5 @ Walmart in the hunting section. Leaves zero residue and doesn't clog up the pores of the fabric. The re-proofer works really well too, bring back new life to old goretex jacket etc.
What do you guys do about your hands? That's one thing I can't seem to figure out. More something to keep my hands dry from the constant rain and drizzle. A bonus if it makes handling line and a reel easier.
Dry cold is pretty straight forward, it's the PNW freezing rain that gets me. Cold feet and hands are the only things that I can't tough it out through. Once that part is compromised, I'm done.