iPad uncovered repair runs $269, so it's not as bad as you stated.Yes and I highly suggest you buy it. These screens are extremely advanced and in all likelihood any damage to the screen will result in a completely ruined iPad. I wouldn't want to risk dropping the iPad and losing out on $550 (after tax).
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nope, i don't plan on keeping it for more than a year, so it's not necessaryi do the yearly resell thing, and have no intentions on stopping.
+1
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I did just like I did with my 4S. Recently I had some water spill on my shirt pocket where my iPhone was. Initially the speaker would not work but after everything dried out my phone was working again. Of course, the water sensor in the headphone jack has been tripped so warranty service will not be possible but luckily I can get another phone for $49 if it does stop working. I just prefer to have piece of mind.
I don't think that there is a LSI in the iPad 3, there wasn't in the iPad 2.