It most definitely is. You're absolutely right, sir.
As I mentioned, there was this terrible incident back in August when a gang of jihadis attacked an Egyptian security post and killed 16 Egyptian soldiers. This was clearly a huge shock and a wake-up call for the Egyptian authorities and for President Morsi personally. He took pretty drastic action by firing the head of intelligence and firing some of the other senior military commanders, who were held accountable for their failure to indeed prevent this incident and deal more generally with the situation in the Sinai.
You're quite right: it's a very worrying development. There was an incident not that long ago in which these people who were operating in that area actually attacked the MFO station, the Multinational Force and Observers station, where Canadians indeed serve. Thank God that none of our Canadian personnel were injured or hurt in the attack, but they could have been.
Israel, for obvious reasons, is very nervous about what's going on in this area and about the potential for it to bring violence both to Israel itself as well as to other neighbouring countries—and to Egypt, for that matter. It's certainly not in Israel's interest to see Egypt destabilized or attacked in this way.