The IT card stays at 1% for all purchases except those in the revolving 5% quarterly cash-back categories. What's only good for the first year is the Cash Back Match where Discover matches all cash back you've earned in the first year.
If the It went to a 1.5% on everything card after the 1st year with the 5% rotating categories still in place I think you'd see far more people keep it in their wallet during off-quarters where their spend doesn't suit the current 5% categories.
