Jut got back from IST actually.
If you avoid Taksim and Istiklal street then you wouldn't even know anything was happening. But those are two of the most popular places to stay and shop so a lot of tourists were caught up in things.
As long as the police weren't around things were perfectly safe and calm. You could walk up Istiklal with a few hundred thousand of your friends cheering and all the bars and most of the shops were open.
I would say not to hesitate to go to IST but avoid the hotels near Taksim or Pera/Galata and stay in Sultanahmet or other areas.
As a side note the Havatas bus shuttle wasn't running to IST today so it costed a few extra lira for a taxi instead. Apparently the shuttle to SAW was running but I'm not sure where the pickup was.