Italian traditional blends are kentucky based. There are three traditional pipe tobaccos in Italy, all of them made by Manifatture Sigaro Toscano (MST). They are "Comune", "Forte" (it means "Strong", and it's an appropriate name: nomen omen, as we say) and "Italia". Comune and Forte essentially are pure kentucky ("natural" as it's written in the package; we call them "trinciati naturali" because they have no aromatization or chemical manipulation... oh, well, I'hope so). Not particularly reach for bouquet and flavor in general, they have a typical taste, very strong and also a little rough (it's not a bug, it's the real essence of these tobaccos). I'm not able to describe them better (not only for my poor english, also because) they are very far from each other tobacco I know; the best thing i can suggest is just to try them, if you visit Italy and don't surrender at the first impression. "Italia" is the less difficult to understand and appreciate, especially for a not Italian smoker, with a few (or none) experience with Toscano cigars. It's essentially a mixture of oriental, kentucky and virginia tobaccos. I think it's the first italian tobacco I'will suggest to a stranger, after all. The most typical, although, is the "Forte" (that's also the elder one; the pipe tobacco that our grandpas used to smoke in last centuries).
I usually smoke Comune, Forte and Italia, as well as not exactly italian blends, like Squadron Leader or Commonwealth (EM, of course). I like Italia too, pure or mixed with toscano cigar, with or without a drop of whiskey (usually: Jack Daniel's). If you mix Italia with latakia you'll have a sort of EM (almost an EM, really, for the presence of kentucky).
About distribution and diffusion, these three tobaccos are definitely not the most smoked in Italy, but they have their own public of "aficionados" customers.
http://it.wikipedia.org/wiki/Italia_(tabacco)
http://it.wikipedia.org/wiki/Forte_(tabacco)