Heading to Tel Aviv tomorrow. Are the troubles now confined to Gaza? Is the rest of the country safe?

Yes and yes again.
Israel remains largely safe. The affected area is very off the beaten track in terms of tourism. The UK Govt travel advice, for example, hasnt changed its advice level - http://www.fco.gov.uk/en/travelling-and-living-overseas/travel-advice-by-country/middle-east-north-africa/israel-occupied since the fighting broke out
Life goes on and TA and Jerusalem remain as safe as possible
Hope this helps - have a great trip
Jerusalem was fine the day of the strike, but I left right after that.
I would recomend not entering the West Bank. There are riots there right now and people were ANGRY when I was there. I was stoned by a group and saw another larger group going after an Israeli-manned observation tower. If you do go there, as perhaps my experience was unique and others have had a normal time there, at least use caution. It's probably best to talk to other travelers in Jerusalem to hear their experiences.
There are NOT riots in the West Bank. However there have been stone throwing incidents at Kalandia Checkpoint and a few other places. The West Bank remains open for travel and I have had several groups go on trips during the last few days. However it is important to stay abreast of the situation on a daily basis. Palestinians are definitely angry but that anger is not directed at visitors from abroad, only at Israelis and the IDF.

Unlike some other places in the Middle East, tourists are never targeted (physically or verbally) by either side in the Palestinian-Israeli conflict and are welcomed by both sides.
Okay, I was targeted by the Palestinian side three days ago. By rock-throwing protesters. And no, I was just walking by and didn't do anything at all to provoke them.
Leave the definitives out, please.
Wow I'd have to disagree with post #4. The whole essence of an Intifada is directed towards tourists. Israelis are going to stick it out no matter what but not tourists. I've got a group due in a few days time and they're looking for ways to back out without losing a ton of cash on their tickets and reservations. It's reasonable to have such thoughts in light of the other things that can potentially happen still.
guywhoeats - Where exactly did you have stones thrown at you?
My experience is that it's rare for tourists to be targeted.
I disagree with grinninggnome who wrote: "The whole essence of an Intifada is directed towards tourists." The essence is directed towards Israelis and the IDF. My experience is that Palestinians are eager to tell their story to tourists who visit, and protect visitors from violence when they can.

#5 (guywhoeats)
I don't doubt that what you say is true. However, were you targeted as a tourist? I doubt it very much. You were just in the wrong place at the wrong time. Tourists are occasionally victims of Palestinian violence, but this is coincidental. They are not targeted.
#6 (grinninggnome)
What you are saying is that the Israel tourist industry+ is being targeted. Perhaps. But the tourists +themselves are never targeted.
Let's not split hairs. I was targeted as a non-Palestinian in the West Bank, Bethlehem specifically, about half a kilometer from the checkpoint. Other tourists, also from the USA, who were in Hebron told me that had pretty much been told to get the hell out by the locals. I had been to Hebron and Bethlehem prior to the strikes and I found that what #7 said was correct. The day of the strike, however, they were not eager to tell a story, they were eager to express frustration bordering on hatred for Israel and the United States.
I agree that tourists in general would probably not be targeted at most times, but #3 and especially #4 seemed to indicate that something like that could never happen. And I want to be clear that it did.