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The only time I have seen any ghosting on my 950 is when it has been subjected to cold temperatures as when I have taken it outside with me when going to the doctor's office. Once it began to warm up (that is, get closer to room temperature) the ghosting disappeared.
I, too, bought the extended warranty (3 years) as it covers accidentally sitting on it or having my cat use it as a springboard to a window sill and cracking the screen, among other possible calamities. When I got my 505 3 years ago, I bought a 3-year extended warranty for it. Haven't yet had to use it (and it only has 3 months to go), but it gave me great peace of mind. I didn't hesitate to take it everywhere with me.
The Sonys come with a standard 1-year warranty (90 days on labor), but if you sit on the device and break the screen, it is isn't covered. As far as i know, the standard warranty is typical of that offered on most readers and if you want drop-the-Coke-can-on-the-screen coverage, you have to buy an accidental damage warranty.
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