I imagine this is a problem for any program in Florence, but there is very little immersion with API and LDM.
API is great if you have never been abroad before and are nervous, but I felt there was almost too much hand holding.
The accommodations are extremely nice. We had a huge apartment right downtown, within close walking distance of classes... and in a building full of other American students. Yes, the social life can be great, but I didn't go to Italy just to party with other Americans.
The same goes for the classes. The subjects are really interesting, there is some challenge but they aren't overly difficult, but all the other students are American. I had one Mexican girl in my Intermediate Italian class, and the rest were Americans. There is no difference of perspective, except perhaps from your teachers (at least most are Italian).
Overall, there is a lot of support in this program, great housing, interesting classes, and little cultural immersion. My Italian only improved because I had some previous study, my professor was challenging, and I traveled a lot and stayed with Italians (luckily, my roommate had relatives still living in Italy).
Too many of the students go with closed minds and spend all their time partying in Florence's clubs with other Americans and the Italians who party there just to meet Americans. Then they sit and complain that they can't split checks when they go out to dinner or that things aren't exactly like America. I have nothing against sorority girls from Long Island, but they seemed to make up 75% of the students and they had no interest in having any kind of an authentic experience.
Lastly, this is a pretty expensive program. It includes a lot of field trips, including an overnight one in a hotel, but I would have rather paid less and just done those trips on my own. (Again, more hand holding.) The housing must also be extremely pricey. I wouldn't mind living a little further out of the city around actual Italians. I was prepared to live in a tiny apartment, not a gigantic loft.
All of these views are from my experience in Spring 2007, so perhaps things have changed. Just my opinions.