I repeat myself, but folks interested in an active Bali chatter forum will want to visit http://www.balitravelforum.com/index.html. There wasn't much being said about threat perception there today. The government warnings were posted, and a bit of inconclusive discussion followed.

We normally visit Bali in late (northern) summer and there's been some family discussion of safety in anticipation of this year's journey. The downside is that, although low-rise hotels like the one we stay at aren't inviting targets, even the streets around Kuta Square, and places like Nusa Dua Galleria might be attractive if they're reasonably filled with shoppers.

We visited Egypt a couple of weeks after the African embassy bombings a few years ago. We avoided tourist crowds, but were greatly heartened by the massive deployment of troops - well equipped, and professionally placed, too - anywhere a tourist might venture. We haven't been to Bali since their version of 9/11, but I don't think you'll see anything similar. So although the chances of anything happening, and of it happening where you happen to be, are very small, I'd feel better knowing that anyone who did try something violent could clearly see that they were certainly going to pay with their own lives.