You're right toughb... In fact, the ONLY extended warranty I had ever purchased (at the time...) was when I bought new appliances about 10 years ago. (I even congratulated the salesman as being the only one to ever successfully sell me one- but I did talk him down from $250 to $150! LOL) Paid off in spades too... Because I bought Fridge, stove, dishwasher and microwave all at the same time, the warranty covered up to 2 appliances so I chose the Fridge and dishwasher (most moving parts etc...) The ice maker broke down twice and the motor went on the dishwasher- All of which was fixed for free... (As a result, I have since amended my personal policy on extended warranties... and have purchased one for our new Washer/ Dryer as well...)Have to agree with you on most things that are sold with extra warranty charged.
That said. Furnaces (the newer ones), totally electronic flat top stoves and top line fridges with electronic everything including ice through the door do have an above average breakdown rate. I would buy an extended warranty on these items only.
Extended warranties for electronics like Ipods, DVD players and even computers etc almost NEVER pay off since they depreciate so quickly and become obsolete. (newer/ better/ faster thing comes along...)
Just my nickels worth.