When I receive emails from prospective travelers who are concerned about safety, I respond by saying that travel of any kind has its risks and that each traveler should take heed of all official warnings and weigh them against their desire to travel. Travelers should depend on their own personal sense of whether or not it is a good idea to go because no person can give a traveler the assurance that everything will be OK.
I can, however, share that in my experience of Bali, security is very good and our tours avoid the problem spots of the islands. This year 2011 I have already completed three tours with yoga groups and have a tour scheduled for August. A group from a local faith community in Santa Rosa was among the very first tourists to return with me to the island after the bombing of several years ago, and because we were willing to return at a time when no other travelers would, we have won a special place in the hearts of the locals.
Nevertheless, I do not make any guarantees other than I will do my best to keep every entertained, informed, well fed and prayed up. Bottom line is that each person must trust their own intuition and go only if they feel confident it is the right choice for them.