As for not being the best short stop on the team...I disagree. Jeter was a better defensive player than A-Rod. Moving A-Rod to 3B made sense.
I agree that moving ARod to third made sense, but it wasn't because Jeter was the better SS.
ARod (SS) > Jeter (SS)
ARod (3B) >>> Jeter (3B)
Arod (SS) + Jeter (3B) << ARod (3B) + Jeter (SS)
Jeter has always had ZERO range to his left, and 3B is all about range to the left. Jeter's jump throw turns a routine play into something that looks like a highlight. He might have been the glitziest SS on the Yankees, but he certainly wasn't the best.
Jeter is a year older than ARod, but they both had their first full MLB seasons in 1996.
Jeter (1996): ROY; .969 Fld %age, 4.52 RF/9
ARod (1996): Second in MVP; ineligible for ROY due to the Mariners bringing him up in 1994; .977 Fld %age, 4.56 RF/9
Jeter (1997): .975 Fld %age, 4.45 RF/9
ARod (1997): .962 Fld %age, 4.40 RF/9
Jeter (1998): Third in MVP; .986 Fld %age, 4.25 RF/9
ARod (1998): .975 Fld %age, 4.62 RF/9
Jeter (1999): .978 Fld %age, 4.00 RF/9
ARod (1999): .977 Fld %age, 4.80 RF/9
Jeter (2000): .961 Fld %age, 4.12 RF/9
ARod (2000): Third in MVP; .986 Fld %age, 4.77 RF/9
Jeter (2001): .974 Fld %age, 3.81 RF/9
ARod (2001): .976 Fld %age, 4.72 RF/9
Jeter (2002): .977 Fld %age, 3.81 RF/9
ARod (2002): Second in MVP; .987 Fld %age, 4.73 RF/9
Jeter (2003): .968 Fld %age, 3.74 RF/9
ARod (2003): MVP; .989 Fld %age, 4.54 RF/9
Those are the first eight full seasons of their careers with each at SS. 1997 was the only year where Jeter was the better SS, and it was marginal, at best. Many would have called that season a wash between the two, defensively.
1998 might be considered a wash, but most who care about defense would give the nod to ARod, due to the seven-percent difference in range. After 1998, there is no season where Jeter is even close to ARod in terms of defense.