I used to go down to Baja a lot for vacations- Esenada, Bahia de los Angeles, etc.
I see there are some incedible deals in the resort towns now. I am interested in something on the Pacific side, like Cabo (which is on the point).
How are things now? I know the border towns are very dangerous, but how that far into tourist territory?
Anyone have any suggestions on where to stay? Something not too touristy, but clean, and right on the beach. If May a good time?
I haven’t been in a while, but my understanding is that things are fairly unstable in most parts of Mexico at the moment. BBC news has a nice little map on the bottom of this article where you can see the areas under tremendous cartel influence.
Eh- we go to Cabo at least once a year, and we’ve never had trouble. If our kids are with us, we don’t drive up to Todos Santos for lunch at our favorite restaurant, but generally we’ve seen no trouble in and around Cabo San Lucas. We did get shaken down by some cops once, but it was an anomaly and it only cost us about $60. 
The real trouble doesn’t seem to have gotten quite that far down the peninsula yet. Which is odd, since you would think a big tourist area would have more trouble. I would give the usual advice- be smart, keep your head up and you’ll be fine. Insert the usual common sense stuff about street vendors, beggars, etc, here…
We stay at the Westin Regina, about halfway between Cabo San Lucas and San Jose Del Cabo- it’s lovely, has it’s own beach (but you can’t swim in the ocean- nasty, nasty currents, and I grew up an open water swimmer…) and the service is good. I have heard good things about Cabo Surf Club in San Jose but don’t really know anything about it. We have never stayed “in” Cabo itself, too touristy for me, but lots of people like it, especially if they won’t have a car. The resorts along the corridor between CSL and SJDC are fairly isolated- you are pretty much stuck on campus if you don’t have a car.
ETA- it is NOT advisable to be in Tijuana or Ensenada right now- you couldn’t pay me to go either place, and I used to love Ensenada… 
My parents and my brother live in Cabo nearly full-time. None of them have said anything in particular to me about having any worries, and I was down there just a few months ago for two weeks and everything seemed just the same as ever.
Of course I might be wrong, but from what I know, that little slice of land is untouched and will remain so because the local police and government really depend on things staying the way they are.