American Express Blue Sky Credit Card: Worth?

I just got my American Express Blue Sky Credit Card.

This is a replacement for the American Express Gold Rewards Card, which I got for free for a year (annual fee is $150.00).

The Blue Sky is a free card, forever.

Benefits/Notes:

• 10,000 points if I charge at least $ 500.00 during the first three months. It is equal to $100.00
• 1.25 miles for every $1.00 spent.
• No blackout or expiration dates.
• ‘Unlimited’ travel choices including any airline, any hotel, cruise, car rental or any travel package, charged to the card.
• $100,000 travel accident insurance
• Points can be redeemed in 5,000 point increments, with a minimum redemption requirement of 10,000 points for a $100.00 credit.

Cons:

• Not much flexibility
• Redemption only for an ‘eligible’ travel purchase that has to be charged to the Blue Sky Credit Card.
• Cannot be transferred to another loyalty card.