Just because he didn't direct doesn't mean he wasn't on the scene. After "A New Hope" was released he began setting up his companies, investing in other projects. He worked with Spielberg on the Indiana Jones Trilogy up to 1989, there was the Radioland Murders (lest we forget), various other projects that he was a producer on, then he started the Young Indy series in the early 90's, then the Special Edition, then went right into the Prequels. So, really - the guy hasn't had a break since THX-1138 back in the early 70's.
This idea that some people have about him disappearing from the industry, sitting at home watching "Little House On the Prarie" reruns while knitting mittens for his kids, or thinking up fart jokes for Jar-Jar for 16 years is just plain ludacris. Granted, he was a little rusty at directing as evidenced by the glaring errors of judgement in The Phantom Menace. But, honestly, there is more to the guy's body of work than just Star Wars. (Dare I say it?)