I think that HTMX is better than React. I think that writing in my server side language of choice (Raku as it happens - ymmv) is better than TypeScript.
If you want to write HTMX / HTML in a componenty and functional way then HARC stack gives you that for Raku. I grant that Raku is a step change if you haven't seen it before and that there are some awkwardnesses in the example that could be ironed out.
You may prefer PyHAT, FastHTML (Python), HARM (Rust), GOTTH (Golang) and so on...
I have been taking a deep-dive into Lit recently, because the CMS I use (Umbraco) has built their BackOffice (CMS management interface) in it. It has been fairly easy to grok, other than learning the CMS specific libraries.
With that said, HTMX feels like the progressive enhancement solution I wish I had back when I was doing so with jQuery (and Prototype.JS even before that). I appreciate your solution, and definitely want to take a deeper look in the future. For applications, I still tend to use ASP.NET (Core, whatever you want to call the current open-source version of .NET). HTMX seems like a perfect solution to progressively enhance an application, while your library does far more for controlling how library code is written in JavaScript than a gigantic mess of jQuery scripts with shared state.