I have been using Jquery in many enterprise projects for about 18 months and I have had almost nothing but success.
The fact Jquery is renamable to anything via the $.noConflict() function pretty much takes care of conflicts with existing scripts.
Its interaction with (good) CSS is a lifesaver in terms of simplifying what you have to think about in terms of DOM, etc.
Performance is usually great, though occasionally some Jquery wheels are worth reinventing for narrow uses where performance is poor with Jquery (you'll know these when you see them). Though passing in the element to search with is often a solution to this (e.g., $(".SubItem",knownParentElement) instead of $(".SubItem") ). Moreover, in most cases when Jquery is doing more work than necessary, the benefits of having readable code that is going to work 95% identically cross browser far outweighs a few extra ms here and there.
Size, especially with the minified version, is well worth the weight, it will simplify and probably reduce your overall code in complex apps.
Cache issues can be bypassed by keeping the Jquery version in the file name (rather than renaming it jquery.js or something), so that it is always loading the version you expect.
And as far as Plugins, oftentimes they are huge timesavers, and usually good quality (esp the ones from Jquery directly). Though sometimes they are a swiss army knife and it's easier to build your own butter knife if that's all you need...
To sum up: I heart Jquery!