Extended warranties for games aren't exactly a smart investment.  If you're careful with your discs then they'll last a long time, and considering how much we pay for these discs in the first place you'd expect people to take good care of them.  If you've ever browsed the used games at your local GameStop, however, you'll find out that treating discs with care is a rarity.  Personally I find the starter kits to be a greater waste of money.  $25 for some screen cleaner wipes and a plastic case that stores only two games?  Yeah, sure...

Speaking of lots of money, Microsoft has unleashed Halo 3.  Did you (or are you going to) buy it this week?  Rather short and to the point, but I'm curious.