I've just got back from Egypt and the only word I can use is AWESOME!
It was my first visit for a couple of years and being a Yank I thought hard before going this time. It would have spoiled my holiday if I'd been beaten up for having the same nationality as Dubya.
I needn't have worried. The Egyptian hospitality was fantastic as always. I got harrassed a bit by people who wanted to ask me why America was invading Iraq, but it was mostly polite. I noticed that the attitude changed as well after the war was won and Iraqi people started to speak their true feelings.
It was a sad trip too. sad to see how dependent the Egyptians are on tourism in towns like Luxor.
If you like bargains, there's never been a better time to go. If you like peace and quiet now's the time to go. Sailing a felucca down the Nile is great at any time, but much much better when there are no cruise boast chugging past.