Covers that are arguably better than the originals:

"Mr. Blue Sky" by the ELO was a tune I barely paid any attention to way back when, and it disappeared quickly into obscurity for me. Allison Young & PMJ turned it into something else altogether, a wonderful 1940 style tune full of quirky angst that I didn't recognize at all initially. She has transformed over the past decade into a formidable singer, of older tunes, especially.

Allison & Joshua Lee Turner teamed up to cover Peggy Lee's iconic "Fever", and while it might not be better than the original, it's certainly just as good & more fun. She can't keep her hands still. 🙂
 
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Rockwiz is an Aussie TV show, I believe, with a core house band and lots of guest stars. They've done lots of great covers. The high energy ensemble style where every band member takes turns singing lead makes this the most entertaining version of "like a rolling stone" I've ever seen/heard:


Their takes on "Radar Love" & "Walking on Sunshine" are also marvelous.



PS: such a travesty that Google has limited standard YouTube audio resolution to 128kbps
 
Not 'better', but a great cover:


There's a version by Eric Clapton, albeit in poor quality, also great which sticks to Bob's arrangement.

The starkness of this version seems to bring home the lyrics. Recorded at Electric Lady (Jimi Hendrix' studio). I can imagine Jimi covering many Dylan songs but I don't think his voice would suit this one, although he had the life experience (no pun) to do it justice.

Geoff