Yes, there are times in a tourny when folding AA pre-flop is a correct play. e.g. when you are on or close to the bubble and by virtue of sitting out the hand, one or more players are likely to go broke and put you ITM. Or in a tourny with a steep pay-out structure, where again sitting out the hand will likely move you up in real $$s significantly.

The situation you outlined is not the best example of a time to fold AA pre-flop. I'll take a +50% chance to quintuple my chips early in most tournies. Now, if it was a multi-day tourny, it was day-1, and I had put up $10K of my own cash, I might find a fold there, but in general, the situation you outlined is not the best example of a 'fold AA pre-flop' situation.

Also, folding AA pre-flop in a cash game is just plain ridiculous. Especially when you are getting 5:1 on your money. There are no survival considerations to take into account if you are properly bank-rolled. If you still don't get it, calculate the EV of that call and hopefully you'll see the writing on the wall.