I was in Srinagar last month and felt that I was in any other Indian city. There was an atmosphere of peace and quiet everywhere and yes, I too was on the boulevard alongside the Dal at around 9.30 P.M. and also early morning at around 7.00 A.M. I also walked all the way from my hotel near the Dalgate area to teh Lal Chowk area and not once did I feel any apprehension. The security measures are still there but, much discrete. The shops are well stocked and teh patronage is good.
As an aside, the shops are three in number in the new complex and I carried my half in my pocket for nearly two hours, roaming along the boulevard. No problems at all.