@Sil_liS,
Now it's a one time fee for an X period wherein the device will be replaced no questions asked if something goes wrong with it. The fee varies, as well as the period. The $25 I paid at Best Buy was for a 1-year (or was it 2-year? I can't recall at the moment.) coverage for my $200 Sony PRS-950. For my $250 Nook Color, I think I paid $60 for a 2-year warranty.
I will say that getting married has made me appreciate extended warranties more. I love my husband, but he's something of a butterfingers sometimes and he has broken his fair share of shiny devices. This is obviously way worse than when I break my own things and just am out however much money.