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Most of what you read is indeed smoke and mirrors. Yes Panama has a high murder rate, but it is for the most part gangs killing rival gangs, so if you stay out of that life it doesn't affect you. Many American's say they feel safer here than the did in the US.
Just like most areas and big cities, there are places you don't want to go. But they are easy to avoid. Somewhere earlier in this thread someone posted about searching for videos on Colon. Well, there is no reason to go to Colon. Just like in Canada or the US going to the ghettos is inviting trouble, so don't do it.
In all of my years here, I have never felt unsafe. You need situational awareness, and common sense though. Unlike in Canada where the nanny state takes care of you, here in Panama you are your own lifeguard, so you are more responsible for your own security.
Panama isn't all rosy like some promoters like to portray it either. But many of us here love it here. You have to find your own paradise, and know that every place has its blemishes.