I went with the extra 2 years for $450 CAD = $342.45 USD.
So, if you plan to keep the bike for a long time, $500 is a good deal. On the other hand, if you plan to mod the **** out of it e.g. I,E,T, cams etc. or race it, may not be worthwhile.
But remember, the bike is a first year model. It might be worthwhile to get at least one more year of warranty.
Case in point: My water seal is leaking, waiting for part and repair under warranty.