I love this part of Melbourne City - especially at night time. All the buildings are all nicely lit up and I was reminded of Paris or some similar city at night time. A very romantic city if you like that sort of thing.
It is also a 'happening' place - it is home to the ACMI or Australian Centre for the Moving Image and is located not too far from the Arts Centre and the Art Gallery.
So what made me fall in love with Federation Square and the ACMI. Back in 2007, they had a Disney-Pixar exhibition, showing snippets of animated films (recent Disney ones), the techniques used for storyboarding and animations, the materials used and the like. I swore that everytime I return to Melbourne, I would pay the ACMI a visit each time. So far I've kept this promise.
Also nearby is the Melbourne Aquarium - be sure to check that out as well.