Am not sure why Ooty has the sobriquet 'Queen of Hill Stations'. Rising altitudes and dense vegetation sure give a pretty frame to the place but am guessing that's the case with most hill stations around the world; except the diesel fumes on your face that hang onto your nostrils like the haunting but lovely background score of Kill-Bill. The dirty streets, blocks of popping not-so-elegant concrete settlements and hill tops stripped brown bare for steppe-cultivation add to the woes. But the diesel really does it. 
Don't get this wrong. There are swathes of breathtaking landscapes and hikes higher up in Ooty but the fact is you have to put your traveler cap on (and not the tourist cap) and really look for them rather than have them signaled on the town map. Like most hill stations Ooty has its share of 'Dolphin Noses' and "Insert Noun/Adjective" Points and botanical gardens which are Government / Town development efforts to gather tourists at the edge of a cliff. Wonder why people gravitate to a marketed cliff while the entire town is privy to equally good of not better altitude drops/cliffs. The Botanical Gardens are good though with a few stretches of 'Scotland'sh Landscape, if one may. 
If you are in Ooty to grab some calm, you are at the right place, but only make sure you choose an accommodation that is away from the town centre. Or a resort that has enough of a landscape for you to walk around, read a book, or just lie on the grass without the sound of a moving vehicle. You could stay at either of the two marvelous places - one near the town square (King's Cliff) and one the Tiger Dam Reservoir (Sherlock's). (Have reviewed both the properties).
You will do well to hike upto Dodabetta Peak - the highest point in Ooty. Hiking may be the best way to explore the Pine and 'Shola' landscape of the hill station. You will be surprised as to how the landscape and equanimity of the place changes the minute you are out of the main roads - and this in thy's opinion is the real Ooty. The short walks to any of the water reservoirs are good as well. {If you are staying at a reasonable good hotel they must be able to provide you with a local who will guide you on the hikes}. Another must visit place is 'Avalanche' - a good 3 hours drive from Ooty town - it's breathtakingly beautiful! In all probabilities you might be the only other person around this olce when you visit Avalanche!
The town has its other usual suspects - chocolates, honey and eucalyptus oil. While they do not stand out as specific products they're good souvenirs and support the local economy. 
You might want to take a cab from Coimbatore Station that will drive you upto Ooty at a cost of Rs.1800 ($35) in about 2.5 hours. There are cheaper Bus'es plying from Coimbatore as well as Mettupalayam (the foot hills of Ooty) and they take a longer while. Coonor is another small hill town on route to Ooty which is may be a bit less densely population but its also at a lower altitude. Stay away from the main roads and be sure to hike among the higher slopes!