I didn't know that the s550 was around 10 years ago. Maybe only in Europe?
Anyhow, it's up to you. One thing about being in the UK is that I believe you are legally entitled to purchase parts yourself, is that correct? That does make you less dependent on the dealer for service, which IMO is a good thing. If it were my reg and parts were easily available at a decent price, I wouldn't worry about the free parts warranty. It sounds like with your diving habits (60 dives in 2 years) annual service might be more expensive even without the parts cost than occasional servicing by an independent (but competent) service tech who has access to the same parts as SP dealers. Of course the appropriate interval between servicing is largely dependent on two factors: 1) how well you care for the reg, most importantly thorough cleaning after salt water dives, and 2) how well was the service done. I have a friend with a MK25/D400 that he bought from our resident SP expert; that reg was still performing flawlessly several years and about 150 dives down the road. At one point I thought about servicing it for him; but on inspection it looked and acted like a brand new reg. Conversely, I saw a MK20/G250 that looked horrible and leaked like a sieve after one season because it was not rinsed well after saltwater dives and probably had not been cleaned all that well at the prior service.
The upgrade to the MK17 internals is an excellent idea, if your reg has not already had it.