Thanks for all the replies. I really appreciate your time and effort.
I LOVE the 27inch screen. Its my major reason for wanting the imac. Its actually pretty good value also compared to mac mini with all the accessories and screen.
Would I be a bit silly not to get apple care? Its $268 in Australia. How many people have used the extended warranty? Do most apple users get it?
And do you have to get it at purchase time or can you buy it before the 1 year warranty expires? (I seem to recall someone got it just before their original warranty expired?)
The first thing you should do is check to see what the standard warranties that are given to you when you purchase a product. We in the USA are given limited warranties out of the box so buying Apple Care might actually be a good investment for us. Other countries however, primarily in Europe, have better warranties compared to what we in the USA get.
My personal philosophy is if the Apple product costs at least $1,000 and has a built-in display, Apple Care might be a very good investment.