Well, it would if you paid list price. Most dealers will service the car way cheaper than list. I just had a B service, brake fluid, ATF change and some other bits and pieces done for £430 and I know someone who paid even less than that for the same work.
Be careful of making the decision based on the cost of the ATF change - it's not called for on all models (the later 5 speed boxes don't seem to ask for it) and the dealer will not do it if it's not called up by the Electronic Service Sheet.
Mercedes-Benz ESS
I do have a problem with the these plans - many other manufacturers offer them and they're way cheaper than MB charge.