On Friday last week, I got Apple to replace my iPhone4 which was out of it's '1 Year warranty', after threatening legal action for not following EU consumer law directive EC 1999/44, which gives you 2 years cover against manufacturing defects.
Apple has yesterday updated it's website showing EU Consumer law coverage -
http://bit.ly/HQojJn - now whilst I don't think that this was (entirely

) down to me; it does give everyone further options than just considering Applecare - there are obviously advantages of Applecare, which offer more than EU consumer law, so it's really just down to what you want to do.