At Georgia Tech, the labs associated with Physics I and II have a large programming portion. They had us use VPython [1], which is a strange package which includes a version of python and a graphics library. It worked pretty well, and I got a good kick out of it. They had us model gravitation of planets (using discrete time steps). In Physics II one of the assignments was to create vector field displaying a magnetic field, and then animate a magnet around the field in a circle.
I think the programming might have been a little too complex for some, as some people took physics first or second semester before having a programming class, and it became difficult for the TA's to help people with their code as they taught how to accomplish things, not accomplish it in a clean manner.
Overall though, I think it added a good bit of value to the course.
[1] : http://vpython.org/