This is really neat. The coolest part is being able to register your own "tags" which take any arguments you want.
The problem I see is that this only works for "all known HTML tags." If you want to use custom tags, like <template> (I believe that's what meteor uses), this won't cut it since it uses $.el.tagname syntax, every tag has to be loaded into the $.el object.
How about a very similar, more jQuery-like syntax instead:
$.el('template', [
$.el('div', {'class' : 'foo'}, [
//other children here
//so basically, the last arg is always an array of children
]
]);