My local dealership did not offer me the 'smart' extended warranty, but did offer another third party one, at double the cost of the one I'd already researched myself. When I immediately declined, he asked why and I explained. He hemmed and hawed, flipped through papers and then offered to meet the price of the one I'd researched with his. I asked to check the coverages first and had to really push to get them. In the end, the coverage was significantly less than what I'd found on my own.
In short, you're doing the right thing. Do your own research and go in prepared! Go in prepared with an outside quote (and make sure you have a copy of the coverage/exclusions list).
The company I went with (and have dealt with before quite satisfactorily on my lemon Saturn) is Warranty Direct:
Warranty Direct