FWIW, I have XF 1.2 (and jQueryTools) seemingly all working with jQuery 1.8.3. I tried 1.9.1 as well (with the migration package) and started getting some errors deep in jQuery regarding some animations; I haven't tracked down the cause of that yet. I'm going to continue to see if I can get 1.9.1 working without much issue.
jQuery 2.0 is basically a non starter as I expect to be supporting IE8 for a while.
Also FYI, to developers that have written custom JS for their add-ons, this may end up being a fairly big BC break. Changes of note: if you have data-x attributes where x is written as camelCase, you need to change your JS to reference them as lower case (this follows the HTML5 spec). Also, you'll need to deal with the attr vs prop change in jQuery. All standard XF JS has been updated and it shouldn't require any HTML changes to work (though your data-camelCase attributes should be changed to lower case just to be clearer).