Since the Aplecare does not cover accidents, I really don't think it's worth it. Just IMO. Yes, I'm not a fan of extended warranties at all.
One thing that surprises me about the Apple warranties altogether is the fact that you would actually have to PAY to get any answers to your questions after the first 90 days, or what ever the period is. Even if the product still is under the one year warranty. Or maybe I have misunderstood something...
On the other hand... My wife got the Applecare for her iPhone 4 when she bought it in November (even though I told her not to...). Last Sunday she went swimming with the phone and it died. We tried all kinds of tricks to get it to work, but with no luck. I then told her she now has an expensive paper weight. Well..., on Monday she went to Apple store and they replaced it for her for free. Not sure if the Applecare had anything to do with it but she was pretty happy. Especially since I told her they wouldn't do anything...
Then again, with the prices Apple sells their stuff, I guess they can afford the occasional courtesy replacement...
Anyway..., not sure if Square Trade sells warranties for iPads, but if they did and I was to cinsider ine, that's what I would get.