Wow that is interesting. My wife has 2 pending apps with them and i was afraid to call as they would see both and likely deny one.
I wonder if your experience is the norm or whether most reps would notice and deny the second...
I'd imagine it's a case by case basis. Personally, I actually use a Citi card as one of my primary cards (for dining) so I'm not sure if that affected my application. Regardless, I was willing to split the CL across both just saying that I would prefer to have a Visa as a backup for the Amex (in case Amex isn't accepted).
Judging by others' recent experiences, it doesn't look like instant approvals are occurring that often for Citi or Chase apps, at least not on the popular mileage promos.