Hi Kewyn
Kuta did have a bad reputation for thefts several years ago and a new police office was opened. more police stationed here a number of the criminals were caught and jailed and things cleaned up a lot However, maybe because of all the new development and higher tourists numbers, in the last few months I have been hearing stories again of thefts from rooms and I met one girl a few days ago who had her bag pulled off her when on the back of a motorbike. This was at 11 at night.
Although like anywhere there are risks most travelers here don't have any problem.
When you surf leave your bike in designated parking areas where there is security. Parking costs Rp2000 for a motorbike and probably the same for a bike.
Obviously don't leave your camera or any other valuables on the beach when you do surf. If you rent a motorbike rather than a bicycle you can leave a few small things locked in the seat of the bike. Most surfers then either leave the key with the parking guy or hide it somewhere nearby (or a zipped pocket in your boardies is a good idea)
As you say bad press shines through - the problems are reported but not all the great holidays that many people have here without incident.
I should also add that the girl I met the other day who was robbed said it has not put her off Kuta - she plans on being here for another couple of months!
As a final add on - Mimpi Manis have safety boxes in the rooms for added peace of mind