Do whatever you feel comfortable with, but I am not at all so ready to give up on credit cards outside the US. Despite this "wave" there are still cards that do not charge an extra fee: some MBNA, USAA, some credit unions, etc. There are many ATM cards that do not charge a fee -- and as others have pointed out, most ATMs outside the US do not charge a fee. (The fee is usually charged by the issuing bank, not the bank running the ATM.)

Even if one had to pay an extra fee, I think the convenience and safety of a cc far outweigh the risks and costs associated with cash. Carrying sizeable amounts of cash overseas would not be a very good idea, IMO.

I don't understand why so many people are ready to throw up their hands and give up on cc's simply because some banks have tacked on new fees.