There was some discussion about this on an earlier jQuery-update-thread: There's no urgent need to update your sites to the most recent version. Other than with server side software, you have close to no security issues when using an older version.
We're tightening this down even further in 1.9 to prevent a few other cases, which I am sure will break some code, but the only real solution is good input hygiene and HTML escaping on the part of the application itself.
What I didn't realise is that jQuery 1.6 is only from last year.