Friends of ours are out in Lagos at the moment and popped into Luz a couple of times mainly to show some support for the village.They say that the media presence has decreased considerably and is really confined to just one street.Luz is a lovely little village and the locals,who will have been devastated by what's happened, will go out of their way to make your holiday enjoyable.
If you check this webcam you'll see that people are still getting on with their holidays and enjoying themselves and I'm sure you'll do the same.

http://www.algarve-luzbay.com/webcam/cam_page.html

Depends where you are in the Ocean club,we've just come back and were staying in the garden phase.The private car park at the rear of our apartment was full of media vehicles complete with satellite dishes from 7-30am till around 6pm complete with generators whirring away.Away from this area though you would be o.k. We generally used the car to visit other villages/beaches so were away from the Ocean club for mostof the time. You will see the press photographers quite a lot around Luz but they tend to be discreet.Sure you will enjoy as it didn't spoil our holiday!