Actually, fmarano, I don't think the article is completely ridiculous.
I have saved money on a car, a $2000+ TV at Circuit City, and a washer and dryer at a now-defunct appliance store....all the same way, by negotiating a rock-bottom price for the item, then and even lower when I hemmed and hawed on an extended warranty and ultimately the price STAYed low when I bailed on the warranty.
The thing that this practice requires to work is that there are large ticket items sold by retailers and by sales people where the price is negotiable. Some places won't negotiate, but for those that do, this can work if the sales person sincerely thinks you are interested in the warranty. In order to work this counts on the sales person not reneging on their lowest price, and if they try to, the customer saying something like: "So that's bait and switch...or an illegal bundle", etc.
It works. Best Buy may have caught on, but the practice itself does work.
TJR