Then we will have had 13 months of good use of the computer. We will then spend another $600 and get a faster, more up-to-date machine. That's not the ideal situation, but a total of $1200 to have an updated computer after a year is a lot more appealing the $750 to be able to keep the same, slower computer longer.

It's one thing to buy AppleCare for a $2000+ computer or display, but when AppleCare costs 1/4 of the price of a new computer, it just isn't worth it just for the off-chance that something does go wrong down the line. (and I DO have AppleCare for my G5)