AppleCare for iPhone - yes/no?

[rouderon]

1st Gen iPhone and 1yr warranty with Apple about to run out before Christmas. If I understand how AppleCare works it will basically extend the warranty one additional year for $69. My main concern is the battery life, which is pretty pitiful. Also, I had to exchange my iPhone a few months ago due to it periodically calling people at random (actually watched it do this - without touching it). So far no problems on the newer phone. Any advice?