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When I'm writing jQuery code I like to use $varName to refer to vars which store a jQuery object, and plain old varName for everything else. This is a fairly common technique that I picked up from I think Paul Irish or Rebecca Murphey.

In your case of $this and this I would generally declare var self = this rather than var $this = this. Fairly often if "this" is an HTML element I'll declare var $this = $(this).

Not saying your way is wrong but I do find it helps me to keep my jQuerified and non jQuerified variables visibly separate.

My buddy wrote the article so I can't comment on his stance but I'm with you on the var self = this;

Like you I like to avoid the use of "$" character unless dealing with jQuerified variables

I've seen some code (mostly from Backbone.js apps) use "var that = this;" instead.
I like the $this just because I'm used to it from codeigniter.