Replace unknown, mysterious html arg to replaceWith(fn...), with just the current node.

src/manipulation.js

@@ -263,9 +263,12 @@ jQuery.fn.extend({
 			// Make sure that the elements are removed from the DOM before they are inserted
 			// this can help fix replacing a parent with child elements
 			if ( jQuery.isFunction( value ) ) {
-				return this.each(function(i) {
-					var self = jQuery(this), old = self.html();
-					self.replaceWith( value.call( this, i, old ) );
+				return this.each(function( index ) {
+          // HTML argument replaced by "this" element
+          // 1. There were no supporting tests
+          // 2. There was no internal code relying on this
+          // 3. There was no documentation of an html argument
+					jQuery( this ).replaceWith( value.call( this, index, this ) );
 				});
 			}