[jQuery] Using $ to insert HTML into the page

[jQuery] Using $ to insert HTML into the page

Apologies if this has been raised before - I searched but couldn't find anything.
In the documentation (<a href="http://visualjquery.com">visualjquery.com</a> version), it says that the $ function, when passed some HTML as a string, will "create the DOM elements representing that HTML string, on the fly".
Looking at the code though (the clean function), it appears all it is doing is using innerHTML - is this the case? If it is, I think the documentation should be changed to better represent what is actually happening. If not, can someone explain how this works to me please?
Thanks,
Matthew.
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