Because its obviously a scam. They WANT you to drop or break this ****. So they get more business out of you to repair said device, or completely replace it.
Hell, because I was paranoid about my iPod breaking. I ended up paying 20 dollars for a rubber case. I ended up putting it in the wrong way and ripped out the bottom of it. However, it makes it easier when I want to plug it into my Podium or the PC.
And besides, I have read stories in Nintendo Power back in the day, when people had Controller Paks, Game Boy Colors and games fall from high heights or runned over or stepped on by accident, and they came out with minor dents.