ULib is indeed a library for lua, and in this case, Gmod, yes, like jquery is to Javascript.
It includes lots of tools for Gmod that just weren't included in Gmod or lua to begin with.
Later revisions were actually designed to carry across multiple lua games.
Before Megiddo had to invest in "real" life, he even planned on a 'ULX' equivalent for another steam game that uses lua (that for life of me can't remember it's name at the moment).
I think the site/domain and project were pretty much put on hold once he got buried in school.
ULib or ULX vs stand-alone;
Standalone
- not everyone uses ULib. Some dislike ULX so much, they think if your mod requires ULib, it means ULX (It doesn't) and therefore might not try your code.
- Self Dependency - you learn to code without cheating relying on nice already well tested code.
ULib;
- Library - When coding, I just kept finding features in it that helped keep me from re-inventing the wheel. I can't count how many times I asked myself 'ok, i want this, how do I do it in lua. Oh look, 10 lines of code can do it. Wait...darn...ULib has a function that does it in 2.
- Compatibility - We DO override some Gmod functions, but, we allow priorities in chain. Have a hook you don't want to be broken by other badly coded hooks? Features in ULib allow you to set a priority. Other code (normally) will run as whatever default. Set a certain parameter, yours can always run first. (This doesn't guarantee hooks won't break, but..can help)
(Hook = Gmod functions that look for game events in Gmod and can be used to run your code for the event)
Overall, I've always found using ULib library easier than straight figuring out (or coding if I already knew) how to do something raw in lua.
BUT...I started with coding my own stuff in Lua before I stumbled across ULib and the wonderful original team surrounding it. (Spbogie....where are you?!??)
I'm not sure my skill would be at the level it is now if I'd started out in ULib to begin with. It really did help me stop re-inventing the wheel when using stuff.