Fear of heights is not such a bad thing. It's one of those built in instincts that assist one in self preservation. Avoiding heights aids in avoiding long falls....
When it comes to Airborne operations, it can be overcome. I am still not a big fan of heights, and I've got 68 jumps (plus one off of the 250' tower). The weird part? I HATE the 34' foot tower, and would choose a night/combat equipment/mass tac jump with several hours of NOE over a single exit out of that damn tower!
I suppose it all has to do with confidence in one's self AND the equipment. Army parachutes are excellent, and most soldiers in the Airborne community are extremely cognizant of any dangers assosciated with Airborne operations. It's a great way of life.