That's the headline for an eTurboNews update on Thailand. Then again, the first sentence says,
"Thailand’s tourism sector continues to function despite political turbulence."
The bottom line: Would you advise friends/family to visit Thailand now?

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Short answer: yes.

But, (you knew that was coming, didn't you) I would make sure any plans made were flexible, since things could change. At the moment, things in most parts of Bangkok are 'normal' and there's no reason at all why you wouldn't enjoy the other parts of the country just as before. That's unlikely to change, but this round of civil disorder is different than the dozen or so I've lived through here, so nobody can guarantee anything.
I'm just back from Bangkok, and I would definately advise travelers to visit Thailand. The Red Shirts were in evidence, but they were either driving the streets in the back of pick-up trucks, or were massing in distinct areas. They were friendly and seemed happy, and people on the street cheered them as they passed.
The violence is sad, but Bangkok is a large and busy city, and daily life goes on. As long as visitors don't get too close to the places where the demonstrators are massing - and those areas are generally blocked off, - the temples are still beautiful, the markets are as busy as ever, the restaurants are full, and the shopping is still exemplary. And the bargains on hotels and resorts right now are amazing.
Outside the city there is little evidence of any conflict.
Thailand depends heavily on tourism and it would be a shame if its visitors stayed away.

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