Are you using it yet K? I'm barely into the front edge of jQuery, don't have much experience with it yet at all.
Not yet but soon. It seems that they are constantly making it faster instead of making new features which is great news for webapps. The major problem with webapps right now is the sluggish interaction. They are not snappy like desktop programs which makes them feel less effective and somehow inferior. It will be also a major speedbump for browser based cloud computing. But if your servers are up to the task and you use jQuery properly, there shouldn't be any reason for sluggish behavior because jQuery itself has become so fast that it's not the issue.