What are you basing these claims on? How do you know what most people are doing? Regardless of what most are or are not doing, each person needs to assess the options and decide for his/her self.Most people it seems are purchasing a new phone once per year, which renders the tech warranty of AppleCare rather useless (you already get one year for free). Of course, you get protection from drops/accidents, but if you're worried about that, you might as well buy yourself an insurance plan from your carrier. If you're only replacing a phone every year, you're going to save yourself some money (the plans are typically $5 a month in the US), plus you get protection from theft and loss too.
Verizon certainly charges much more than $5/month to cover the iPhone. I don't recall the exact amount but it's over $8/month with a fairly high deductible. I'm dropping Verizon's coverage and going with AC+. YMMV as with any subjective matter.