I don't think you will find too many people that will disagree with you about that particular fee being one of the worst fees that a credit card issuer can charge, since it's usually their own system that allowed the charge in the first place.
I think you may find, however, that Citibank is not the only one doing it.
Have you tried asking them to remove the fee? They won't admit fault, but they may agree to remove the fee in the interest of keeping you as a happy customer.
-David