I bought a couple days ago. I've never had insurance or worried about it, but this time around something just told me it was better to get it. It'll work out to be $50/yr (plan on keeping this model the two years) which isn't bad if you have to use it. I'm not worried about theft or losing it.
I've never dropped any phone I've had for the past 10 years (incl. the original and 3GS), but it figures that since this one is glass it'll probably be the one I drop.
Better off to get the warranty!