Who knows, maybe he has some good ideas up his sleeve for these "small" movies. Of course we could interpret this to literally mean that he is going to make a THX 1138 Special Edition.
Actually he already did, and it was completely ignored. And in that case he made a number of editorial changes to the film as well and it's doubtful we'll ever see the original version again. (The good news is unlike some of the unnecessary add-ons to the original trilogy, most of the changes to THX were actually improvements, though the Blu-ray is unplayable by many BD players without added memory; seriously - it's the only disc I've ever successfully received a full cash refund for at Best Buy because it wouldn't play.)
As for his retirement, he can blame the fans all he wants, but the general consensus is that his editorial changes to the original films weren't necessary, and that the prequel trilogy really wasn't very good.
I do agree that some of the fan reaction has been really out of line - the whole "George Lucas raped my childhood" B.S. And I do feel that it helped give birth to the "bite the creator" movement - the really toxic fan atmosphere created by some factions of fandom regarding, for example, Rick Berman during the Enterprise era (it was bad before but it got verifiably insane after 2001), Russell T Davies (substitute "xxx raped my childhood" with any sentence incorporating the phrase "gay agenda"), etc. Some fans have started to take it as not only a personal affront but a violation of their personal religion if the creative team behind a show or franchise they like do something that they don't approve of, rather than putting up, shutting up, and moving on like they used to do.
Of course this is nothing new as those who lived through, say, the "fire John Nathan Turner" lobby in the waning years of the original Doctor Who can attest. But the Internet amplifies things, and provides an excuse for people to make insane statements behind the (alleged) anonymity of the Net. Like those who talked about firebombing Rick Berman's house and the like, simply because they didn't like a simple TV show. When some of the guys who were very vocal about JNT back in 1988-89, they put their names to their criticism, and they received the lawyer letters from the BBC. These days people think that just because the screen shows (for example) 23skidoo they can say whatever they like. Not true, of course, but that doesn't stop people from running off at the mouth. And it can get dicey if they don't have training in detecting and preventing libel.
All that said Lucas needs a thicker skin. He wins by the pure virtue of a) having more money than likely the annual income of all his critics combined (note I said critics - critics are always the tiny minority); b) in 20-30-40 years no one will care whether people got pissed off that Greedo shot first or Jar-Jar was a dick; c) last I looked people are still buying the Blu-rays and watching the movies when they come on TV. Just like all the anti-TNG movement of the late 1980s mattered not a squat in the long term. And if Star Wars 7 were to be released tomorrow it would be the No. 1 movie of 2012, hands down, just as if that live-action TV series were ever to be made, it'll make some hefty coin for whoever airs it. People bitching about so-and-so raping their childhood have zero impact on the bottom line.
Alex