i think the extended warranty is dumb. when i got my 60GB ps3 at best buy, the kid at the register was like "you're not going to get the warranty??" and he was shocked. i laughed at him.
i also didn't buy rust protection on my car. i can't believe they offer that and that people would buy it. if they sold a special johnson rod attachment to the ps3 i bet people would buy that too.
the ps3 comes with a 1 year warranty. if your ps3 is going to fail and it's not your fault, it's probably going to fail within that year. sure, it may fail after that but i doubt it. my ps3 was the original i got in 2001 and it still runs fine.
buying an extended warranty on your electronics is a scam. don't be dumb.