Elvis
It's perfectly safe in Dubai. Just expect to find added security and a bit more queuing at the airports.
Flight loads are going reasonably OK on some carriers, although loads are definitely down. EK for example, still have enough traffic to justify maintaining full schedules at the moment. No reductions yet. QR loads are a bit down, but also due to season than solely the Iraq situation.
I am heading back home (to Dubai) in a few days from London and am not in the least bit concerned. Most flights will route down across Egypt and thus well away from the "action".
My honest opinion and advice is to go ahead with your holiday. Let me know through Private Messaging if there is ay elp you need whe you get here. Where are you staying?
Who are you flying with?
A300Man