if you're going to talk about warranties, go with Circuit City if the Apple Store isn't an option. Circuit City's full warranty, which includes accidental damage, is fantastic, and does not screw you over. I used to be an employee of Circuit City a few years ago (sigh..), so I suppose I can speak from experience. If you buy the full warranty, which it seems most do not, as long as you can bring the item into the store physically, they will either replace it or send you a gift card for the full amount.
I still prefer Apple's warranty, however. On two separate occasions I have brought my ipod into the Apple store and within 30 minutes have walked out with a new product. Hassle free.