Most points have been well covered with above posts.
There are a lot of variables to consider, such as intended use of the car (DD?), are you going to put on a lot of mileage, will you be tracking it, & how much you will DIY with this car.
Remember that these extended warranties are essentially insurance polices that the dealer sells to add to his bottom line.
So someone with light usage many well fall on the negative side of worth, where a person with heavier usage of the car would fall on the positive side of the policy worth.
I think you made a good assessment on the true cost of the policy.
Which ever way you go be really sure about the fine print, such as who can you take the car to for repairs?
Good luck with it.
