Hi Mike,
The function you refer to is just one of the three signatures listed for .change(). As you can see in the documentation, that signature was added very recently -- in jQuery 1.4.3. The first argument, eventData, is optional. So, you can keep using .change() the way it has always been used. But, if you want to pass in data to be used by the change handler, you can do so with that first argument. Basically, 1.4.3 added that argument to all of the event shortcut methods so they'd more closely match the feature set of .bind(), which has had it all along.
The examples you refer to that have change: function(event, ui) { } look very much to me like option methods for jQuery UI widgets. As such, they're probably not relevant here. However, all of jQuery's core event methods can take an argument in the callback function (the second argument of that two-argument signature), as well. This argument passed in, when called, is the event object.
I agree that the documentation should make mention of this new argument for the shortcut event methods. We'll make sure that it gets in there soon. In the meantime, you can read more about it at
http://api.jquery.com/bind/#passing-event-data --Karl