Are extended warranties necessary on plasmas?

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.

LIke anything else in life, you take's yer chances! Me, haveing sold, hundreds, maybe even thousands of extended warranties over the years in retail sales, I don't think most of these things end up panning out in the big scheme of things. Your odds are that you're fine. So, I think "why buy" to a loosing propossition, odds-wise? Being the gambling man I am, I prefer to go with the odds, as does Vegas. That's just me. However, a deal's a deal. And if you opt to pay $500 more on something, so you can sleep better at night, then so be it.
Nowadays, if it were my money, and I bought a $4k plasma, er whatever, and the darn thing took a bath 2 years latter, I'd first try to talk to the manufacture and try to reason with them, and see what they'd do.
What I've found is that many of the manufacturers have a warranty, like any other, to simply protect themselves legally. However, many good companies will go very much above and beyond the warranty to satisfy their customers, their reputation, and business, by taking care of you! I've had many products over the years fixed by manufacturers well beyond the warranty expiration date, personally. YOu just gotta talk to them.
However, if that doesn't work, you can always resort to putting "pressure" on them, telling them you'll raise a stink on the internet, and that you've lots of influence on the buying public, and will spread their bad reputation around, or that you've been buying their products for year,s and you and your family/friends will never buy thier products again, etc, etc. Usually, it doesn't get to this. However, some will make you pay in the end. Still, I like my chances! I'll pass on most of the warranty situations.
HOWEVER,some of the products out there offer "replacement warranties. You can DEFINITELY work these to your advantage when they're about to expire!!! You can simply "make the products fail", right before warranty expires, and then get the new/improved current technology replacement! I know, I know,...it's a bit underhanded. However, who here has never, a time or two, worked the system?! (lol) Heck, the employees of these AV chain stores used to do this kind of manuever with their "emplyee purchases" when they purchased a warranty on something, and something NEW AND IMPROVED WAS was coming down the pike!
Whatever. Anyway, the fact that they manke money overall on these things means you're THROWING AWAY MONEY! You gotta know you'll likely never use the warranty, and that you're money is going "bye bye!!!" I prefer to take my changes, save the money (time is money after all), and buy something else with the money saved.
Usually products are going to fail pretty quickly anyhow, if they are at all...