Current situation in Michoacan - danger?

We have a house in  Michoacan ( near the state of Mexico) and about 45minutes -1hour from Morelia. We haven't had any problems when visiting. My wife is Mexican and me being a gringo  hasnt revealed any problems nor have I seen any Cartels or problems as of yet.  I suppose it depends on where and whom your with. We dont travel outside of the area at night as I'm told some of the roads between Mexico City and Morelia aren't safe at certain times/hours  even locals wont take certain routes  at night.
It seems that the town we have a house/stay in( Tlalpujuhua)  relies alot on tourism as its a Pueblo Magico and old mining town near Oro, and not far from the monarch butterfly sanctuary and they do have Federal, Local and various law enforcement(s) patrolling the main streets and in town areas. Its my understanding however that bribes and the extortion of small businesses, and even some farmers/routes to market are common place.  We taken buses from Mexico City to and from Michoacan for years and never had any problems.  I would only take a cab with or from someone you or others know well and stay off any of the back roads/short cuts as the main highways are much safer and patroled by the  Federalies