Updating the CKeditor library in Drupal after Version 7.14? I will now quote from CKeditor project page at Drupal.org:

To use CKEditor in Drupal, you may need to download CKEditor (the library which this module relies on). This would not be necessary starting from version 7.x-1.14 (not released yet - 24 April, 2014), where the installation has been simplified and CKEditor from official CDN is available by default.

As you could see in the picture, my sites/all/modules/ckeditor/ckeditor folder is empty, i.e the folder where you put the library... So my question is, given that the library's folder is empty by default, is it even possible to update the JS library but not the module...? Is it even possible after version 7.x-1.14? Or should I wait to the coming Drupal module release? Thanks.
Yes.

Libraries should not be store in module directories for the reason that it makes it harder to update things.

Best practice is to install the Libraries API module and put the library in sites/all/libraries (or an equivalent libraries directory if you're using an install profile or something).

CKEditor and a lot of other modules integrate with the libraries API module.

The CDN option that is referred to in your quoted text is different though. In that case you don't need to have the CKEditor plugin anywhere in your website files.
Instead the module will use a copy of the library from the CDN.

It's possible there could be performance implications from not using a local version but I haven't actually tested that.