I could honestly care less... Apple Care is a measly fee in comparison to the cost of the phone. The one time I had a third party repair shop fix my phone, the battery was permanently damaged and I had to get a new phone.
Most people who intend to really use their iPhone purchase a model that's at least $1k. Budget minded folks don't buy Apple products - Apple care isn't intended for the budget minded individual.
What does "really use" actually mean? Perhaps putting on their power user face and scrolling real quick through twitter? Or is it those people who regularly set up a timed photo such that they get the perfect shot after throwing their phone over Victoria falls?
At this point Apple should just start iPhone with AppleCare Subscription.