s extended warranty for my Apple Watch necessary?

Can you afford to replace or repair your Apple Watch out-of-pocket?

It is a risk calculation. If nothing happens and you do not get Apple Care, then you save money. If something happens, then it costs you more than Apple Care.

If you take good care of your devices, and you do not do risky things with your Apple Watch, then the odds are in your favor to not get Apple Care. If you seem to break things easily, then maybe get Apple Care.

Except for the 2016 Mac with the infamous Butterfly keyboard, I have never purchased Apple Care. I have sometimes had to pay for my own repairs, but over the years, I have saved more money not paying for Apple repair insurance.

NOTE: I would never skip on car, home, medical insurance, as the negative implications could be devastating. But my Apple devices, are not in the same catagory.

FWIW, I get the warranty on my iPhone and Watch.

It has paid for itself a few times, and I've been happy I had it.

Up to you though, as was stated, can you afford to replace it IF something happens?

They don't want you to do anything. you are free to do so or not.

If you think you may damage or have issues with the watch that may need repair in the future you may want to consider it.