Too pricey for me. I'd take the money and get a better game, such as Demolition Man, in the $2000 range. I agree there's some value in the warranty, but remember that's only temporary. One day the machine will break and you'll need to learn to fix it. That might be on Day 7 or it might be 6 months in. Regardless, while the warranty might offer some relief at the onset, it's not worth the additional cost because you'll eventually have to learn (or pay big dollars for repair service) It's not like the game is non-operational and you've got to start from scratch and get it to run.
While I'm no repair expert, I've learned an incredible amount in just the 18 months I've been in the hobby. You will, too, if you suck up the knowledge available here and throughout the net.
What's important is not the cash money so much as the ability to either liquidate or trade the machine and get a decent value out of it (so you can get another machine!)