That's your opinion journeyman. I have had the extended warranty on 3 HD bikes. Each of the 3 was to my favor, and 1 of those was several thousand dollars ahead, which would have paid for the cost of all 3 alone. And yes I count the $50 deductible. The bikes with a lot of electronics are more prone to need repair, less so on Sportys of course.
If somebody rides a only few miles a year (1-2,000 miles) extended warranty is probably not a good idea. If somebody rides 6-10,000 miles a year or more, is probably a good idea if the bike is kept past the 2 year factory warranty. I know quite a few people who ride (Ultras, Road Glides, Road Kings) a lot, and each of them is very happy to have the extended warranty since it has saved all them them more than it cost.
I wait until the factory warranty is up & then purchase, have not seen the need to buy the extended warranty at time of purchase. Others do, not a bad decision just one I have not seen the value in.
The insurance company that sells these would do actuarial tables to calculate risk. The assumption is: people who buy bikes think they will be riding them more than they will be. From experience, a lot of Harleys are not ridden that much - 10 year old bikes with 2,500 - 5,000 miles on them can be found for sale. Lots of 2-5 year old bikes with very low miles are out there. For those who do not ride that much, chances of something breaking are much less. That's where the selling company wins their bet. Those who ride more unfortunately usually win that warranty bet with them as well. Nature of the beast.
**Edit in: Ultrafxr you were posting at the same time as I was. All good points. Will also be checking out Cornerstone. Interested to see if most HD dealers will honor it as well as the Indie network.