I've read good and bad Aerofan reviews too, but generally people talk highly of their English instructor and planes.
They certainly have recently revamped their offices in Cuatro Vientos, which isn't a sign of them being in trouble.
LH2 is correct though about the level of traffic there. The area around Whisky point, and a nearby aerodrome called Casarrubios I find particularly worrying. It is indeed VFR only too, so I believe a lot of the schools doing IR training use Valencia for instrument practice, which implies you may well be better off going there in the first place.
I did think it was controlled though. You certainly can't depart or arrive without a flight plan and it sits right under the Madrid TMA. Am I misunderstanding the use of the word ?
Re Madrid itself, she who must be obeyed is from there, so no comment from me