My sister's G5 iMac failed, and she happened to have the extended Apple Care warranty. I advised her to bring the iMac into a Mac store for a new hard drive, but to retain the old one so I could recover the data for her. Unfortunately, Apple won't give you the old hard drive back, nor will they offer data recovery services. Inasmuch, I would imagine that they do not offer data destroying services either. To me, these factors render the Apple Care extended warranty completely useless, and even the cause of unnecessary identity theft risks.
Pretty lame huh?