Update 22 September 2013: It’s again pretty safe to travel to Egypt.
You can ask me in the comments for concrete travel advice. I live in Cairo, so I am pretty aware of the situation here. Ask away, and I will answer up to the minute about safety and tell you what you should do in your particular case. It all depends on where you are going in Egypt.
Here is what I originally wrote.
With the current security situation, you might wonder if it safe to travel to Egypt. Since I live here (I live in Rehab City just outside Cairo), I will keep you updated on the current situation for travelers to this beautiful and mystical country.
Safety is a relative matter, and it will always depend on where you go and what you do. You can get mugged any day in a major city anywhere in the world if you just show up at the wrong places, and you can also move around freely if you are just taking some basic security measures.
Egypt is in this regard not different from any other countries.
As of today, 3rd of May 2013, it is perfectly safe to go to the big holiday resorts like Sharm El Sheikh, Hurghada, Ein Suchna and the other tourist destinations by the Red Sea. Here in Cairo I would not recommend going to the Pyramids in Giza or Downtown Cairo including Tahrir Square. The political situation here in Cairo is very unclear still, so I would avoid places with big gatherings.
So, to answer the question is it safe to travel to Egypt, I would say yes. It is safe as long as you fly in to the holiday resort and stay there until your vacation is over. I would not go with any of the trips outside the resort itself, and would stay away from the roads going between the cities. This is especially important in Sinai, where kidnappings are pretty common nowadays.
Stay around the travel destination, and you will be perfectly safe.