After my post in this thread I want back and listened to a few All Along the Watchtower covers. If it came down to it and I had a choice of picking the music of one artist before being stranded on a island it would be Hendrix but I think I actually prefer Bear McCreary's cover of All Along the Watchtower.
Perhaps its just because the Hendrix version to me is just a song (still a great one) but the version by McCreary has the added effect of being the background of some really powerful TV scenes although I don't think because writing this post makes me really want to listen just listen to the soundtracks, I think the cover is pretty solid without needing any help from BSG.