I was in Bali in May.

The impression I got from the locals I talked to in Ubud was that they liked the Westerners who came to Ubud as they seemed to respect the Balinese culture. They hate what is happening in Kuta and don't even regard it as part of Bali anymore.

If you act like a loud drunk tourist then you'll be a target but if you try to fit in with balinese life they will welcome you with open arms.

As for the threat of another bombing. ... that rumor has been going around for a while and sure, it could happen but if you stick to the real Bali and avoid nightclubs, loud bars ( there's an Australian one in Kuta that encourages all kinds of degenerate behavior), then even if there is a bombing, you won't be anywhere near it.

It certainly wouldn't stop me from going back. I just got tired of constantly being asked if I wanted transport ( in Ubud and around Kuta, Seminyak) or if I wanted to buy a cheap Rolex or if I wanted to go sailing etc etc etc - the touts are what would stop me from going back, not the threat of another bombing