Thanks for everyone's input.
I decided to go ahead with SquareTrade's 2 year warranty for my Kindle 3 wi/3g. I couldn't pass up the 2 year warranty with accidental damage coverage for $30. (That's with a 30% off coupon)
I do have 1 year extended coverage with my credit card but just as TomF mentioned, it does not cover accidental damage.
I thought for $30, this coverage will be well worth it.
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