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We've had our 2010 Z4 35i since it was new. It was factory ordered, and arrived in November 2009. It now has 30K miles (50K kms) and has had no major issues and only minor maintenance items like a new battery, HPFP replaced under warranty, and new front electronically controlled shocks. So, from my experience, you don't need an extended warranty.
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2013 535xi, Carbon Black, beige interior, M Sport package, HUD, DDC & ARS, ACS springs, Kelleners wheels
2010 Z4 35i, Crimson Red, beige interior, 6sp manual, Adapative Suspension
2000 528i, Cosmo Black, beige interior, Sport package (retired)
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