How much jquery is right jquery ?

I am using jquery 1.3.2 on my current project. Drupal has jquery 1.2 shipped with v 6.x. I used jquery_update to allow me using v 1.3.2.
This allows me to use a host of plugins in jquery UI, tablesorter etc.

We started using jquery for some AJAX functionality, popups and client side validations like maxlength of textarea.
Gradually we started using it to allow us implement custom functionality with Drupal views - reset filters, mutually exclusive filters, additional sorting on Drupal columns etc

Latest is to implement some exceptions on the markup for styling. I am starting to wonder how much Query is the right jQuery on a project.
As of now, we have one file ~10 Kb. So far so good !