I have a very good friend here in Toronto (Gold Wing rider) who travels to Israel monthly - I asked him the same question last week - he said it would not affect his decision to travel, as the number of people injured by bombs, etc. is still less than the number injured in traffic.
However, that was his answer LAST week, and the situation over there is pretty dynamic right now - it might not be the world's first choice as a tourist destination, if for no reason other than all the additional military checks and the risk of roadblocks, etc.
Somehow, the idea of someone driving a tank alongside me does not strike me as 'relaxing group tourism'...
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