Are extended warranties necessary on plasmas?

I was considering purchasing a 42 inch plasma last week for around $2000. The salesman strongly recommeded the extended warranty, at a cost of $500. I backed off because something seemed very wrong with a 25% markup for a warranty. The unit came with a 90 day warranty for labor and 1 year for parts. Has anyone had or seen any lemons that tanked out before the manufacturers warranty expired? Has anyone ever have a plasma repaired? If so, what was the cost?
CC and BB are known for things like this. It's how they make profit. There is so much competition for plama TV's right now, they have to sell them for near what they cost. They make profit on the extended warranty.

My personal feeling is to only go with the manufacturer's warranty. They should cover just about everything.
Most catastrophic failures will occur very soon after purchase. The mfr's warranty is more than enough to cover this. Extended warranties on electronics are a complete waste of $$$.

I'm really enjoying the 37" plasma I recently bought for the bedroom...
yeah, plasma should not need anything that manufactures shouldn't take care of in a reasonable time frame. After that, you're likely looking at long term product failure, probably after a warranty. Yeah, theyre' pushing a sale here.
Really, the older CRT's NEEDED and extended warranty, that included yearly maintainance, but not your set! You should be good as it is.
That said, you can clearly see by this, and that internet sales affect also, that it's very very difficult for an electronics store to make profit selling gear! I've personally tried to stear clear of selling electronics by themseleves, and sell what really counts, which is service, consulting,etc. In this case, I'd sell a calibration and installation of the set,with a one year warranty on the work, and just figure to make a few bucks on the Plasma...that's if I were selling it. The warranty? I don't think you need it, no.
My Panasonic failed just a few days before the 1 year warrantee expired. Close call! But, although I had bought the thing on the internet, the local service center fixed it (replacement board) quickly and with no complaints.