Apparently so, according to Michael Ledeen. If this proves to be true, it's good news from a symbolic standpoint. However, I don't know how much of an effect it will have on a practical level. Osama wasn't terribly involved in the day-to-day operations of al Qaeda, and he hadn't exactly been making many public appearances to bolster recruiting. If he is dead, there may be some drop-off in new membership in al Qaeda as a result.
But even if al Qaeda is devastated by his death, Iran has long been the area of greatest concern. Should they acquire nuclear weapons, it seems a near certainty they will use them against Israel, and there is nothing to stop them using elements of, say, Hezbollah, to detonate other nuclear devices in various European or American cities.
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