I love the idea of a book club that's focused on analyzing stories from an writer's perspective.

What sort of books are we talking about? Urban Fantasy, Sci Fi, Fantasy, Horror, general SFF, mainstream? Mostly classics or what's hot right now?
For book selection... hm. I have more suggestions for books that are outside of UF than in that genre, to be honest, though there's a fair bit of crossover in some cases.
World War Z: An Oral History of the Zombie War - Max Brooks (horror, first person accounts of the zombie apocalypse)
The Lies of Locke Lamora - Scott Lynch (low fantasy, think Ocean's 11 in a fantasy setting that resembles late Renaissance Italy)
Snow Crash - Neal Stephenson (...er, post cyberpunk? hackers with swords in the future integrate computer viruses with Sumerian mythology)
His Majesty's Dragon- Naomi Novik (historical fantasy, dragons are used to fight in the Napoleonic wars - think Master and Commander)
In general UF, there's Greywalker, Kitty Norville, Mercedes Thompson, Southern Vampire, Weather Warden, Anita Blake (early books), Newford, Neverwhere, War of the Oaks ...and there's quite a bit of Urban Fantasy in the YA genre - The Demon's Lexicon, Darkest Powers, etc.
I've been meaning to start reading
A Dirty Job by Christopher Moore (the guy who wrote
Lamb, the Gospel According to Biff) and
House of Leaves by Mark Danielewski (which is supposed to be an amazingly mind-twisty book).