That, I don't know, I purchased AppleCare for my IP4
This is the AppleCare Page:
http://store.apple.com/us_epp_151906/product/MC253LL/B?mco=MTY3ODQ5OTY
From that Page:
"The AppleCare Protection Plan does not provide coverage for accidental damage from handling. See AppleCare Protection Plan Terms and Conditions for complete product details."
So if AppleCare Standard didn't cover it, why would they do it for $199 without it??
I think the $199 is for Problems with parts and function, not Accidental Damage.
So you are interpreting this to mean that it is free for standard problems with AppleCare and $199 for standard problems without AppleCare. That is possible but all this talk about accidental damage leads me to believe that the old AppleCare didn't cover accidental damage and thus would be the same price with or without AppleCare ($199). Now AppleCare+ does cover it so it is cheaper with it ($49) vs. same as old ($199) without AC+.
It just doesn't sound to me that people who go to the Apple Store with an accidentally damaged phone (usually screen cracked) are expected to buy a brand new unsubsidized phone. I think there is a standard cost to replacing the most common accidentally damaged phones and that cost is $199.
Hopefully one way or the other more info will come out from Apple about the official policies (but somehow I doubt it).