Would it be cheaper to just send it to Canon and get it repaired in the event of a failure?
Not necessarily, especially after the warranty Canon is required to supply in your country expires. The protection plan is essentially an insurance policy - you pay for it hoping you never have to claim on it. I can't imagine a repair coming cheap and if you're going to use the camera regularly, $200 for three years' peace of mind sounds like a wise choice, especially if the plan covers accidental damage.
From experience, I dropped an old bridge of mine and the lens was permanently stuck in one position - it would have cost more than half as much as the camera itself to repair the damage.