Not anymore!
Now that they raised the amount they charge for a cracked screen, I don't think it's worth it anymore for iPhone or iPads.
$99 + $79 = $178. You can probably get it fixed for less on your own. Or sell it for parts and pay the difference to get a new one. Other less serious problems could be even easier and cheaper to fix (like buttons being stuck). Flat fee repairs are also pretty reasonable even with Apple.
I am taking LifeHacker's advice that if you put away the money you were going to spend on an insurance plan/extended warranty into an envelope you would accumulate enough money to easily replace or fix the occasion item that breaks, and maybe even have money left over.
I think about what I have spent over the last few years up to this point. About $500 in AppleCares (3 iPhones, 2 iPads).
Only had to use the warranty twice and both times it was for an issue that would have been covered no matter what (defect, not physical damage... and it was within the 1 year anyway).
If I had the $600 in cash right now ($500 I spent + $100 I would have spent on the Air's AppleCare if I had continued my warranty purchases), and I broke my new iPad Air, I would have enough to replace it in cash money and have some change left over.
This is also better because AppleCare won't cover lost/stolen but your slush fund can replace your item under any circumstance (or at the least take the sting out of buying it again).
I would only buy AppleCare on something mega expensive, like my 15 Retina Pro. Given that it's just $350 and most of it is integrated (meaning repairs of the mobo, screen defects, etc. could run over $1,000+ easily and its difficult to find cheap 3rd party service) and it lasts 3 years, I still think that's a half decent value.
