If Audi made your bike, buy the warranty twice. Otherwise I wouldn't bother with it, especially if you do your own work.
Kawasaki makes money on the extended warranties. They've priced it based on their experience with that model and what they think it will cost to repair (parts and labor) during the warranty period. Some buyers will pay more for the warranty than the repairs, and some buyers will use the warranty and come out ahead. On average, Kawasaki comes out ahead.
There are some things which tips the decision whether to buy the warranty. Consider these factors:
1. Do you wrench on your own? $700 buys a lot of parts. If you go to the dealer for everything, $700 doesn't go far @$90/hr for service.
2. Is there a mileage cap? How much do you ride? On my FJR I got the 4-year extended warranty, unlimited miles, for $400. 5 years and 75k miles later I never had to invoke it.
3. Is the warranty expensive? If it is, then you're looking at a vehicle that the manufacturer thinks will cost a lot to maintain, or the dealer is marking it up a lot. You might be able to negotiate a lower price for the extended warranty, or even purchase it on the open market.
4. Look at the small print! Consider whether you'll get reimbursed for work done at other shops (non-Kawasaki) and what the deductible is. Also, sometimes emissions equipment isn't covered (catalysts, o2 sensors, etc).
Personally, I think $700 is too much but maybe the electronic doodads changes that. The tire warranty thing is ridiculous.
P.S. I bash Audi because we have spent far too much money on them. The saving grace is that the $20000 Audi's $1500 extended warranty saved us $4000 over three years. The $10000 Audi's $3000 extended warranty saved us $6000 in repairs over two years. But when the warranties expired and they got over 100k miles on them and started falling apart they got way way more expensive.