I guess it's not uncommon that financial institutions that are circling the drain, as was USA FCU before Navy absorbed them, are going to have plenty of fees in an attempt to scramble up any cash they can find.
There was a lot of momentum underway when the USA FCU changes to Navy thread was going, due to the very short timeframe to get in. I do remember when posts started appearing about people apping for USA cards, just in case they were going to have problems betting a card directly from Navy after the changeover.
I think it was a reasonable belt-and-suspenders option to get a USA card just in case, but it's not surprising that it's fee-encrusted, I suppose. I'd say that once you find that you can get an actual Navy CC product, and have it in hand, this USA card could be flushed as an interesting insurance option that is now no longer needed.
Yes, there'll be some impact in terms of lowered AAoA and initial new account impact (even if closed), but once the dust settles, it might seem worth it as a souvenier of the opportunity to finally get into Navy FCU. 
(And for anyone new to this thread, you might be like me and continually confusing USA FCU with USAA Federal Savings Bank. USA FCU was a credit union in deep trouble that was taken over by Navy, and there was a lot of excitement here on the forums in the second half of September when people realized that USA FCU members would be grandfathered into Navy, thus finally qualifying them for Navy membership. They had to get in by September 30, as I recall, so there was a lot of excitement and energy at the time. USA FCU has nothing to do with USAA.)
