jg, yes, you are over-reacting. Mexico is safe if you don’t draw attention to yourself. I traveled to Mexico City earlier this year by myself. The people were very nice and friendly. I got to see the pyramids at Teotihuacan. Even some Mexicans in USA say that Mexico City is not safe. I had no problems.
I also traveled to other parts of Mexico before and I don’t find it to be anymore dangerous than America. Like anywhere, you have to be a little careful. Remember you live in La Jolla, a nice suburb of San Dieogo. Foreign tourists who come to America would visit Manhattan, downtown LA, Chicago, Miami, etc… Those places are not necessary that safe for travelers either.