yup this is bs...
lets say something does happen to your d1 and they give you a d2 - now what are you going to do to customize it back to where it was?? i doubt any android phone will have half the following of the d1 as far as roms and other fun upgrades. i wouldnt snub a d2 by any means, even an incredible or an X, but like others have said, trading a $200 contract price phone with a $50, $70, or $80 contract price phone is a rip. even now the d1 is $150 - thats twice what the others cost!
my advice... drop your insurance asap, keep the extended warranty if you want. a CPO droid costs $289.99 - $310 or less with some high sales tax a full retail with manager discount incredible or X would run you ~$450

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