For me, the BA annual fee is more than offset by the 10% discount off BA flights I book, but I fly enough with BA that I can use that benefit. If you don't fly BA, that benefit is useless. And, if Chase/BA decide not to extend that benefit beyond the end of 2012, I may decide I won't pay the annual fee again and cancel the card in 2013.

Of course, I annually paid the $450 fee for the Amex Plat long before I discovered FT and long before Amex provided the $200 airline reimbursement benefit. There are certain things I am just willing to pay for. I understand that others might not find those things worthwhile. I'd definitely consider a free night worth an annual fee, just as I find the 10K miles granted annually for the Barclay's US card, the 6K points for the Chase Southwest card, and the 7% bonus on the Chase Sapphire Preferred worth paying an annual fee.

Am I getting free? No. Am I getting a good value in my judgment? Yes.