The medina of Tangier is a real one: Streets are narrow, houses in many different styles, and most of this medina is in good condition. That is a proof that even people with some money both live and work here.
This is one of the shops you should just walk by. It has a system of fixed prices, and you will only be able to haggle it down a little bit. But that is not the biggest problem: they sell things here at 2-5 times normal tourist price. And it is the very same products, this shop has not got any better quality! Its name: Bazar Marrakech la Rouge.
The medina is quite big, and there are many commercial areas. Most of these serve the tourist traffic, and it is more difficult to find any areas where real handcraft is performed.
Other areas are solely devoted to living, and there are plenty of nice houses, painted doors, decorated gates and rose bushes all around.