Hi Scott,
It's a destination everyone should head for at least once in their lives, although it is a bit of a 'culture shock' for quite a few. It's a place you love or hate, with no middle ground. I've known folks to come here to work on 6 month contracts and fled within a fortnight, others arriving on the same terms are still here after 20 years !?!
It really is an amazable(??) country with some of the friendliest people I've ever met who are willing to put themselves out at the drop of a hat for you.
As far as terrorism goes, the Govt. here crack down hard on any hint or suspicion of it since the incident in Luxor a couple of Christmasses ago and I would stick my neck out and say the chances are negligible.
My wife and I often venture out into the deserts along with our two German Shepherds in my motorised roller skate (Daewoo Matiz), and we have never had any really anxious moments. On one trip I managed to bog down the front wheels about 300mtrs from the sea, about 1km and out of sight of the main road in Sinai. After about an hour I gave up trying to dig us out, and we set up camp for the night. Around 8 next morning, a pick-up came along the shoreline with two Bedouin on board and made a beeline for us. At the time, my Arabic was almost non-existent, and these two had no English but we managed to communicate and the conversation went something like this... "We have a problem with the car" "I can see that! How long have you been here??" "Since about 5 yesterday afternoon" "OK, I was here at 3, and nobody else here" walks back to pick-up laughing and pulls two sand mats from the back. We were back on firm ground within a couple of minutes, and when I tried to thank them in the traditional manner with a 10 pound note, this was refused. Instead, he asked if we had any water!! Off they went, waving into the distance with two bottles of chilled mineral water from our coolbox, happy as Larry!!
I'm rambling a bit now, but could go on for hours. I have to say there are quite a few unpleasant sides to Egypt, but believe me, the good sides outweigh the bad by far.
Best wishes.