+1 for the warranty! I never used to buy them, but then I had a well-paying job and could replace or repair with no pain. There weren't any tiny hands around to grab things and drop them and I held onto stuff pretty good myself. Things changed. This year alone, I have dropped an Android tablet on a tile floor and completely cracked the screen, within two weeks of buying it. Protection plan, replacement at no additional charge. Dropped my Android phone on the ground at the zoo, no damage except a small dent on the top of the case, which I can ignore since I now only use it to make phone calls and text message. (Thanks, iPad!) Then the big one! My grandson was holding my recently-purchased-direct-from-Apple-refurbished-64GB iPad 2 and the Smart Cover slid off, the whole thing slid out of his hands and the screen got scratched rather deeply in a couple of places. I have the accident protection plan, went to the Apple Store, and the device was replaced under my regular warranty at no cost and I still have the two accident incidents left to use, if needed.
If you can live with it or you hate spending the extra money on the protection plan (or don't have the money), it's understandable that you wouldn't buy the plan. But, it's a personal decision IMHO, and I wouldn't be without the protection plan at this time in my life. Yes, it's an extra $99 from Apple (a little less with Squaretrade) but it beats living with damage that you hate looking at or being without a fairly expensive device completely because you can't afford to replace it at the moment.
BTW, I now have the Moshi iVisor XT (clear) as a screen protector and the M-Edge Super Shell case. My 2-1/2-year-old grandson still has iPad privileges and I have peace of mind. Both accessories actually add to my enjoyment using the iPad because of the peace of mind, but I would still buy the protection plan.