Just wondering if it's recommended to go for the 2 or 4 year extended warranty when purchasing an LCD HDTV? I have in mind the Toshiba 42HL57.

Also, what are the typical things that can go wrong with such tvs? Dead pixels I'm aware of, though I'm not sure if they can just appear spontaneously over time. Also, the sales guy at Best Buy the other day was stressing to me the importance of having a really high quality surge protector (like Monster) with a LCD HDTV, otherwise in the event of a power surge the LCD screen could get damaged (he showed me one that was damaged in a surge where the screen was significantly dimmer than normal). I myself have probably a $30-$40 APC surge protector currently, with connections for the cable line and multiple outlets. Was he just B.S.'ing me, or do I really need to invest in one of those $100 and up Monster surge protectors as well?

Anything with the Monster logo is a rip off, and stores push their employees to sell them because of the huge mark-up.
A surge suppressor is never a bad idea, but there are several brands better than Monster, and without the wallet-raping.

A recent Consumer Reports article said both types of flat panels have low repair rates with the average repair cost on Plasmas around $400 and LCDs around $200.

Personally, I'd call that extended warranty a waste of money. That is, unless you can afford it and just want the piece of mind.