Can you even get an iPhone for $700 anymore? When I got the 6S (not plus) with 128GB memory for myself and my wife they were $1100 each I think?
iPhones have a warranty at list price; AppleCare extends it and increases the scope of service.
I do agree that anyone who plans on purchasing an extended warranty for any product research it ahead of time so the total purchase price fits into their budget, though, and the same goes for sales taxes.