I assume this will attract negative replies, but hey ...
One thing this unfortunate tragedy has done is brought out a few alleged nutters - some religions are all terrorists or those hoping to get cheaper shopping and a better rate, god help us (PS: its just a term, I am agnostic so dont go christian bashing either).
I was in Kuta in October 2002 - my second visit to Bali and I will be making my 10th visit this November so I am very aware of the support the Balinese need.
To go or not to go is a very personal decision. If you decide to go you are not being brave and if you decide not to go you are not being weak.
If you are anxious, ask yourself if it is really essential for you to go right now, defer your holiday a month or two until you feel confident. I dont believe the Bali experience will be the same if you are anxious thinking something will happen.
And to the person cutting and pasting from DFAT, there has been a defer non-essential travel to Bali in place for quite some years now. Stop treating people who travel to Bali as stupid and uninformed. They are completely aware of this island paradise and its peaceful people - they are the smart ones.