So what does all this mean in terms of travelling to Nepal.
Kathmandu - is normal. Actually yesterday, I did not even notice that there were any demonstrations. I only read about them this morning. Almost half of Kathmandu and all the tourists were at Pashupatinath, mingling with the sadhus (holy men) from India, who had come to celebrate Shivaratri. 25% of the people at Pashupatinath were high on grass or hash, considered auspicious on this day.
Other towns: I personally do not have news from there, but going by what travellers who just came back from Pokhara were saying, nothing is going on there and it is safe to travel. Other places are too small to have any problems anyways.
Transporatation: At present, i would suggest that all people use the flights rather than the busses. Not because there is a blockade or anything, but just because the hassle factor has increased. I recently met some tourists who took 10-11 hours to come from Pokhara (which is just a 6 hour ride)
Trekking: The safest trek is the Everest base camp trek...as you fly both ways and there is no maoist activity in the Everest region. Easy trekking (with some contact with maoists, meaning you will have pay them a fee) can be easily done in the Langtang, Helambu area.
Annapurna is also safe and similar to Langtang, but should there be a quickly announced blockade, you will have to trek additional two days right into Pokhara, so come padded with a few extra days.
Expensive yet very very safe can be a fly in fly out into Manang in the Annapurna region. There is no activity up there too...
see you in Nepal!