Though more expensive than a case I'm of the opinion that accidental damage repair/replacement insurance is the way to go, especially with a phone as large as the Note 2. Any case will increase the size of the phone making quick one-handed operation more difficult. The Note 2's width is about as wide as my hands can comfortably handle and operate so adding to its size just would not work for me. For my part (knock on wood) I have yet to drop or otherwise cause significant damage to a PDA or Smartphone in 16 years of use. I've only ever used a leather holster type case where, once removed, the phone/PDA is otherwise unprotected (save for careful handling) until returned to the holster. AD insurance will cost me ~$80. A little pricey for a case alternative? Yes, but - it serves as a virtual case that adds no size or weight to the phone and it provides better protection than any physical case.
That's just my $0.02.