Sears "extended" warranty

[katharsis]

So I bought my new Sony KDL-46W4100 today and during checkout the sales rep asked me if I would like to purchase the extended warranty they have.
There is a 3 year and a 5 year option. But they are very pricey, $400 something and $600 something...

Well, usually I never purchase those as I see it as thrown out money (at least for anything other than a car), but after he told me all things covered I am considering to go back and add that 3 year plan on to my purchase.

Not do they cover any kind of repairs within those 3 years, supposedly if there is something unfixable, they will give me a new tv... if the tv I bought is no longer in production I will get something of the same value (like a list of different tvs to choose from) and if I should not like any of those I can go down to the store purchase any other tv I like and just pay the difference.
On top of that I get a free "installation/checkup" once a year (all in home).

So question... does anyone have this warranty plan and ever had to use it?
Does it live up to the promises they make?
Should I consider getting it?