I remember writing the whole xmlhttp stuff, and to me, that is ugly code. I'd much rather have $.ajax or $.getJSON. Not only is it easier to write or read, it is also easier for another person to come in later and understand.
I do think people should have a basic understanding of javascript, and I can't imagine writing NOTHING bug jQuery code in any web app, but suggesting that somebody who focuses on jQuery is any less valuable than somebody who focuses on javascript to me seems elitest without much merit (with the exception of a very few outstandingly unique projects which don't fit into the capabilities of jQuery).
Is any javascript app not spaghetti code??