Dan, I am completely with you in ditching jQuery for FalconJS. While we would have to deal with some cross-browser issues ourselves, jQuery is mainly tailored at providing convenience for JavaScript developers. That convenience is not necessary for ActionScript/Flex developers, since many features are already in the language, and others are in the libraries (e.g. Flash DisplayList). For Jangaroo, we refrained from using any JavaScript library, but only provide the basic browser APIs (jangaroo-libs/jangaroo-browser) and, on top of these, I implemented a large part of the Flash API, taking inspiration from Lightspark and DartFlash. Well, one small library we do use is XMLHttpRequest, which is rather a Polyfill than a library. Polyfills are okay. They just tame browsers to behave like they should. But jQuery is much more than a Polyfill!
-Frank-