Definitely the best location in Taormina - the flat is very spacious, directly opposite the cable car which takes you to beaches, and right next to the main part of town with restaurants, shops etc. The terrace is amazing - beautiful views and absolutely huge.
Flat is clean and well stocked, there's air con in both bedrooms and beds are comfy.
All in all an almost perfect flat, I would just note a couple of things about the hosts. We arrived late in the evening, very tired, and pretty much immediately were asked by Mary and her husband for €100 for a deposit. This was apparently set out in "the house rules". We then had to spend about 15 minutes negotiating in broken English/Italian that we didn't think we should have to pay this deposit which eventually worked but I felt uncomfortable being asked for it in the first place. I later looked up what airbnb had to say about this and it's against their rules to ask guests for money outside the transaction already made online. They didn't mention the deposit again though, so we left it. They did make us pay a city tax which was €10 and we thought it probably wasn't worth arguing that although really they should have done it through airbnb I think.
After this we had a really lovely stay and although the family live upstairs we didn't notice them too much. Only issue after that was leaving - Mary's husband came and rang our doorbell at 10.07am on our final day and said we should have left at 10am because we "signed a contract" to say we would. Fair enough, it does say on the listing check out is at 10am but I've stayed at a lot of airbnb places in the past and this has always been flexible. It came across pretty rude but something could have been lost in translation.
Would definitely recommend the flat and the location, just beware of the deposit/communicating with the hosts as to what time you should leave.