The Stones wish they could reach Dylan's heights. They were good and all, but there were far better bands that emerged from the British Invasion. If you seriously think the Stones' version of Like a Rolling Stone is better...well then, I think that just settles this argument right there.
Jimi was a guitar player though and through. He couldn't really write a full song, he could only take a standard blues song and fuck it to awesome levels with his distortion and acidy blues riffs. He's awesome, but in a totally different way. Yeah, All Along the Watchtower is better for him than Dylan. Dylan's even admitted that himself.
In terms of other covers that are good, try some of Cat Power's. Paths of Victory and Memphis Blues Again are pretty good. Both of Dylan's are better, but she puts a cool spin on them.
It's disappointing to know that there are actually people out there who deny is talent, but whatever. At least you like a few songs of his, which is all I ask of anyone.