Yes, people die from the regular flu as well, although the H1N1 DOES seem to be hitting more younger people, whereas the seasonal flu seems harder on the older population.
I work in a school 2 days a week, there are confirmed cases there. When I took Collin in to the doctor for a cold, his doctor said half the kids she had seen that day had probable swine flu. It's definitely going around, but she said it hasn't shown itself to be any worse than the seasonal flu. The scary thing IMO is of how early it has spread and how quickly.
I try not to panic, it won't do any good. All you can do is try to protect yourself and your family the best you can, but you can't hide out in a hole. Well, you could, but I would definitlely go crazy if I didn't go anywhere or do anything just in case of getting the flu