not worth it in my opinion
I disagree, with the cost of ipod touch at 200 paying 25% more for the applecare doesn't make sense especially since you will probably not own it for more than 2 years, (ie newer version or upgrade to iphone, ipad, or other mac yet to be released!) I would save your money and if something breaks you can always sell for parts on ebay or use a third party service and probably save more money doing that.