I agree that the extended warranties are a bad move--but I've heard of people using the carrot of possibly buying an extended warranty to get a significant discount. Don't know if it's urban legend, or if there's actually something to it--but it sounds interesting...
Basically, the idea was that the salespeople in the stores, and the stores themselves, tend to get significant bonuses for selling the warranties. So the customer goes in and says, "I want to get this TV, with an extended warranty, but I really can't go with that price. Is there anything you can do to reduce it?" The salesperson will then often significantly reduce the price, with the expectation of recouping their money (and getting a personal bonus) on the warranty. The salesperson then writes up the purchase, with both the TV and the warranty, and takes it up to the cashier for you to pay. However, at that time (preferably after the salesperson is gone, and even better if you have a written/printed copy of the price sheet), you then tell the cashier, "You know, I've changed my mind on the warranty. I'm going to pass on it, and just get the TV without it." The cashier rings it up without the warranty, and voila--money saved.
If the cashier, or the salesperson, balks at that, saying that the TV price is only good if the warranty is purchased, you point out that this is illegal price bundling, and that you're entitled to purchase the TV for the price quoted without having to buy something else. According to the people who told me this, if they continue to balk, this is something you can take to the police and/or an attorney and have enforced.
