Applecare is an extended warranty, NOT insurance - it only covers the stuff the OEM 1 year warranty covers. Therefore, technically you shouldn't buy it expecting that they'll replace the hard drive 2 years in because you dropped the computer (though, it's not impossible to talk them into it anyway!)
Likewise, I doubt during the 1st year that Apple will give you better treatment because you bought the warranty (they never did for me and in my family I've purchased uh.. 7 macs now?)
It's still nice, but a homeowners policy rider may make more sense, those can cover almost anything!
On another note, it depends on your tolerance - functionally, I've yet to have an Apple product die on me, and that included my 7 year old QS G4 (which is probably still in operation today). Cosmetically, hahahahahahahahah yeah whatever.
My PBG4 got tons of use (and my macbook currently does), the only damage to them is cosmetic.