Are there better JavaScript libraries than jQuery at certain things? Absolutely -- look to Backbone, Angular, Meteor, etc. etc. Are they better than jQuery at doing DOM manipulation? I think that's an easy argument simply by looking at the numbers: http://trends.builtwith.com/javascript/jQuery

jQuery or WebKit being dominant platforms doesn't requite that innovation stop, it gives innovation the ability to explode: When you don't have to work about nit-picky cross-platform capabilities or standardization then you get to focus on performance and building sweet frameworks like Backbone and Angular.