What you are calling "great covers" are the exception in rock -- where someone takes a song and changes it substantially to match their own style.
The normal cover in rock -- what you get with cover bands -- is slavish imitation. Hence the derogatory sense of it.
How about...
"Downtown" (Petula Clark) by the B-52s "Victoria" (Kinks) by the Fall "Jerusalem" (composed by Parry/Blake) by the Fall "Whole Lotta Love" (Muddy Waters: "You Need Love") by Led Zeppelin "When the Levee Breaks" (Memphis Minnie) by Led Zeppelin "Alabama Song" (composed by Weill/Brecht) by the Doors "Here Comes the Night" (Them) by David Bowie "These Foolish Things" (composed by Marvell/Strachey/Link) by Bryan Ferry "La Bamba" (Mexican folk song) by Ritchie Valens "Brand New Cadillac" (Vince Taylor & his Playboys) by The Clash "This Wheel's on Fire (the Band) by Siouxsie & the Banshees) "Money" (Barrett Strong) by the Flying Lizards "All Along the Watchtower" (Bob Dylan) by Jimi Hendrix "Come On" (Earl King) by Jimi Hendrix "Woodstock" (Joni Mitchell) by Crosby, Stills, Nash & Young "Little Wing" (Jimi Hendrix) by Stevie Ray Vaughan
And then there are the great covers of " I Heard It Through the Grapevine" by Gladys Knight, Marvin Gaye and Creedence Clearwater Revival.
I think because rock music relies less on improvisation and individual virtuosity than some other genres, a premium is placed on "originality," which is usually only novelty.
BTW: Jimi Hendrix as a source of inspiration for the Beatles (or something like that)? I doubt it.