With the wonderful patch provided in #489140: Libraries API, I was able to use the Libraries API module and place the jquery.ui library in my multisite libraries directory instead of sites/all/libraries.

It took a bit of deductive work to make sure that was the case, so I thought perhaps we should mention this in the README.txt since it makes multisite handling of these libraries much easier when sites/all isn't under your control.

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eporama CreditAttribution: eporama commented
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libraries_api_readme-1268052-1.patch949 bytes

Here's my first crack at the readme txt.

-- LIBRARIES API --

The jQuery UI module is now able to utilize the Libraries API module
http://drupal.org/project/libraries which allows you to specify alternate
locations for external libraries such as the jquery.ui library. By default, the
module will search for the jquery.ui directory in the jquery_ui module directory
and in /sites/all/libraries, however when the Libraries API module is enabled,
it will also allow you to place the library in other locations such as multisite
directories: /sites/<domain.name>/libraries

For more information, see: http://drupal.org/node/489140