replaceWith does not seem to be working as indicated.

replaceWith does not seem to be working as indicated.

  When I transitioned from 1.3.2 to 1.4 I ran into an issue with replaceWith. According to the docs it should replace each matched element with provided "newContent". But in practice it appears to be replacing all matched elements with a single instance of the "newContent".

Here's a test case:

http://jsbin.com/osado3/edit