I am currently in Pakistan and all is fine. I am in Lahore right now and have talked to numerous western travelers who have been in Pakistan since Sept 11th and have had NO PROBLEMS concering their safety. It is business as usual in Pakistan.
When coming to Lahore DO NOT stay at any of the hotels by the railway station. 3 well-seasoned travelers have been ripped off for a lot of money at these places in the past two weeks- heed the warnings in the Lonely Planet. The best place to stay is THE REGAL INTERNET INN. It is located on the Mall behind the Regal Cinema. The precise address is: Surriaya Mansion. Near Regal Cinema 65 The Mall.
Phone # 92-42-7311987. Dorm rooms are 125 rupees and Private rooms 300 rupees. Hot shower, kitchen for self-catering, washing machine and internet on site. The owner's name is Malick and he provides a safe, comfortable atmosphere and will take you or arrange for you to see anything you would like.
Best of luck