I've picked the warranty for 5 years, undecided on service plan.
As has been said there are a lot of new bits on this car, and also I've got DSG ordered. In particular things like the variable cam timing and height which is new is something I believe Honda have had issues with. If it goes wrong you can find yourself paying for a new engine or some pretty hefty bits of it. They are also pushing the engine futher on things like thermal management etc...
Interestingly extended warranty is a "factory fitted option" according to my dealer and must be purchased before the BW confirmed. Why? What do they do differently to a car with warranty compared with one without? Better parts? More QC checks? Seems odd.
On the service plan I acknowledge it is clear money saving where warranty is most likely money lost. However, we're talking about saving maybe £80 over 3 years and I've pushed my spec a little over the max I want to spend when I pick the car up. I enquirer about paying monthly on interest free credit, which is what Ford do with my service plan with them but was told no can do.
To be honest throughout the whole process I have found VW surprisingly inflexible and unapologetic. Things like this, not putting manuals online, the lead time confusion, lack of clarity on options etc etc... Very Very different experience to how I was treated by Ford on my last new car order where there were no issues and my sales rep was falling over himself to be helpful. Even down to the way the communication comes across. Asking about the service plan being paid monthly "no we don't offer monthly payment plans" blunt, unapologetic and even a hint of making me feel embarrassed for asking such a thing. Little bit too "we're not sure you are high class enough for our restaurant sir".
Perhaps I'm being harsh, but I don't think so. I'm sure my experience isn't the same with everyone though.