Considering the price of the machines new, I think that a two year warranty period would be better as standard. Apple Care is a lot to pay, despite the obvious benefits, so maybe if they lowered the price, it would make sense.
It's like mobile phones, I suppose - another form of tech that usually comes with high care package costs, but at least they usually send pre-paid p+p for you to return your item. Having only just purchased my first Mac, i've never had the experience with Apple Care, but would I be right in thinking that you have to pay for returns, or personally take the faulty item back to your nearest Apple store? Please correct me if i'm wrong, as i'm simply assuming.
If that is the case, then the cost should certainly be reflective of transportation of the item from your doorstep and back again.