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Yes, extended warranties are nothing more than a gambling game -- the company is betting you won't break your reader (and it won't fail) during the warranty period and you're betting that you will break it.
If you need it, like all insurance, it's wonderful to have it, but when the warranty has expired and you didn't use it, it's money wasted.
But if you're a klutz given to dropping sensitive electronic equipment, $28 is cheap enough to get a replacement. Be sure to read the fine print, though -- most such warranties, even when they do cover the screen will only replace the screen once, after that you have to pay full repair costs, even though the rest of the warranty is in effect.
Rest assured that the extended warranties are one of the most lucrative profit centers of any business.
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