Definitely not. If you can get the 3 year onsite warranty for $60-70, which they do offer from time to time, that may be a decent deal.
Not $199 for an extra 3 on a 2 year old machine. Chances are nothing will go wrong with it at this point, and if something does you can get a refurbished unit with no monitor for $200 or less.
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.