Just a word from a regional resident.....
As far as can be discerned the Bahrain riot on New Year's Eve was a one-off and apparently random in its targets. Thus, while some westerners may have been unfortunate to get caught up in it, it is difficult to see it as anti-western when the principal targets appear to have been cars with Saudi number plates. The most likely conclusion is that it was a bunch of young bloods letting off steam under a variety of pretexts rather than the manifestation of anything more sinister. I hope so - I'm going to Bahrain this weekend!!
In general, expat communities seem pretty calm - there is no rush for the exit, even from the historically more skittish sections of the community. In Qatar, where I live, there have been no reported instances of anti-western actions, and I would feel equally comfortable in Bahrain. Much of the problem exists in the ever-fertile minds of the media, who are desperate to have something to reporton and show pictures of - peace & quiet doesn't sell advertising space.
My wife flew for Gulf from 79-86, during which time we had the Iranian revolution, Iran-Iraq (Saddam was the good guy then), and an active Libya to contend with. None of us felt especially threatened then, and life in the Gulf is more relaxed now than it was then. Gulf Air has had some well-publicised problems recently, but it seems to have got a decent CEO and is on the road to recovery at last.
Jewel, at the end of the day you must make your own call on what is or is not an acceptable level of background risk, but if it were me, I would be happy to go.
Best of luck.