I just rode through Laayoune yesterday (18/11) and things were tense, but quiet. There are a bunch of newly burnt out buildings and riot police everywhere. I didn't know what the scoop was so I puttered around the city for a bit until a guy at a gas station said it was probably best to move on since he thought there might be some more trouble that afternoon.
If you are taking the main road in/out then you can pretty much skirt the city and completely miss the areas that saw any problems.
Outside the city, both North and South, the main road was fine. I took a couple of small dirt tracks and hit a couple of little villages along the coast and there wasn't a hint of trouble.
The last couple of days have been holidays, so I don't know if that's made things better or worse, but it's something to take into account.
Police checkpoints where hassle free- looked at my passport and then sent me on my way. Friendly guys who all downplayed any problems.
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