What would be the penalty incurred to cancel the booking ?

Depending on the penalty, then may be worth cancelling and rebooking

As far as honouring credit goes, if the original flight and the new flight are operating, then AA has , with its SARS-CoV-2 policies gone beyond what it needed to by giving credit for use towards new bookings

Has your current booking had any significant time changes that , if there is a cancellation fee, that the fee would be avoided