This year, the valley floor has been very cold and snowy -- the big storms of December left several feet of snow. We camped at Upper Pines during the last week of January and had to shovel ice and snow out of our campsite, even though January was totally without precipitation.
And we have hit a few inches of snow as late as mid-March.
Personally, I really like being in Yosemite Valley when there is some snow. It creates a lot of contrast and depth -- the photos practically take themselves.
Yes, it can get cold. Dress warmly and bring a lot of blankets. It is rarely below thirty degrees, so frozen pipes are not a big problem. I am sure it can get colder than that -- but after five winter trips, we have had no problems at all.
My advice is to go as early in the year as possible, given the difficulty in scoring a reservation. Good luck!!