Richard Frisch gives his advice about AppleCare for the iPad. He concludes not to buy it and that buying an accessory for the iPad is a better way to spend your money.
I agree with him about the iPad and nearly every other device that Apple makes. My only exception is with Mac notebooks. I purchased AppleCare for my MacBook in 2006 and received two repairs (that I could think of) that would have cost me over $300 without the coverage. I’m very happy that I decided to spend the money up-front in order to save in the long run. There’s too many points of failure in a notebook computer, especially if you move it from your desk on a regular basis.
(Via Shawn Blanc.)