The Balinise are some of the nicest people in the world. They have been suffering because of the original attack, and they will suffer more because of the recent ones.
I don't believe you have anything to fear (would you not come to NYC?), moreover, show your support to those suffering from terrorism by going there and spending a few dollars.
Plus, I guarantee that everything is going to be dirt cheap. (As if it wasn't before.)
If you're really nervous, stay away from Kuta, and visit some of the more outlying villages. Believe me, the terrorists have no interest in those places.
:-: