Actually, VW extended warranty is very good. $1,500 or so for 3 years after the original warranty expires.
The extended warranty is an extension of the factory warranty and not a dealer extended warranty, meaning that you can get your car serviced elsewhere and still retain the VW warranty.
But at $1,500, I've declined on the offer. It's a risk I've taken, but hopefully should pay off as the GTI is fairly reliable (air-cond which was replaced in mine is a known common prob). I just pray that the DSG doesn't play up lol..
The thing I have to decide now is how long do I plan on keeping the GTI, if I plan on keeping it, and selling the Astra, then I'll service the GTI myself, with the exception of timing belt/DSG fluid changes.