The program is not malignant, probably intermediate in terms of work hours. Good exposure to a wide variety of illnesses, people come from all over the state (and northern Illinois) and are referred for tertiary care.
Most of the residents actually do go to larger cities for fellowship and some choose to stay there (your info is not correct). A percentage of residents do choose to stay in Madison because it is such a great town. Strongest departments are gastroenterology and heme/onc. It is a research institution and there are plenty of cutting edge studies going on at any one time which residents can get involved with. The residents get a subspecialty clinic for one half day a week in 2nd and 3rd years in addition to their primary clinic. While this causes some headaches on the wards, most agree that this long term exposure with your own patients in a specialty is much better than a continuous month of GI or cardiology clinic.
I agree that the African American population is not huge, but still probably about 10-20% of the patient load. Definitely not non-existent.
As for the arrogant statement, I'd have to say there are a few attendings that seem so, but most are nothing of the sort.
As for competitiveness, I'm not sure, probably one step below the top programs. Several of the residents I know ranked the program higher than many higher ranked programs (Brigham, Duke, Emory, etc).
Madison has been voted in many sources as one of the best places to live. Its a smaller city (200,000 population), but is very liberal and seems larger than its size (due to college and state capitol). Very safe, lot of outdoor activities, beautiful lakes, a wider variety of restaurants than some bigger cities (on state street there is a nepali, East African, Turkish, Afghani, Indian, and many other cuisines available). After all is said and done, it is still a relatively small town.
Good luck.