I look at all extended warranties with a fine comb. There is always something that you do not take into account.
If you look at the terms and conditions of the black tie program, you will find a limit for the number of times the battery can be replaced or the screen can be repaired.
The concept of "accidental damage" is very limiting, so you may have to fight your way to justify the damage if the store repair technician is giving you a hard time.
Finally, you either have to repair your device or get a refurbished one. Getting a new device is only allowed if your device has been repaired four times. All repairs will take time to send the unit and get it back, so you will be without your device for several weeks while the damage is fixed.
Yes, the AppleCare Protection Plan
(
http://www.apple.com/support/products/applecareipod.html) may not offer accidental damage. However, I like their phone support. You can call them for anything you want. From setting up the device to actual issues with it.
I guess it all depends on what you really want at the end.
If you think you will be rough with the iPod and are afraid of accidental damage, then go for the BestBuy protection plan.
If you think you will be careful with the device, but are concerned about factory problems within the first two years, or you think you will need help setting up and/or using the device, then go for the AppleCare protection plan.
If you are already familiar with the iPod and are extra careful with it, then save the money and use it on a hard case.