When I bought her an iPad for her birthday early last year, we decided to get the SquareTrade warranty on it, figuring that sooner or later one of us would drop it, or the cats would play hockey with it, etc.
Of course, none of those things have happened yet, but if they do I think we'll be glad we got the coverage, as Apple doesn't cover accidental damage, and it's not an "oh never mind, just buy another one" product given the price (at least not for us...you guys with the $100K systems might feel different about that issue...)