This probably belongs in the credit card forum since it apparently deals with the Citi AAdvantage card.

The short answer is, yes, many have canceled the card and reapplied to avoid the annual fee, or opened multiple accounts. Some have also called and successfully had the fee waived.

There's a lot of discussion on churning these cards here:

http://www.flyertalk.com/forum/showthread.php?t=594781

Many also like the Citi Premier Pass, and there's a lot of discussion of that, too, in the Credit Cards forum.