Lucas wasn't insulting you by making his own movies better in his mind. To him he was giving his own movies the respect and care he felt they deserved, and he spent more time and money doing that than anyone else has so far for their own movies.
And for a lot of us it won't be enough no matter what Lucas does or doesn't do.
Regardless of his detracotrs, Star Wars will be selling well beyond his years and our own.
Once the generation who felt slighted by him pass on, future generations will wonder what the hell all the fuss was about methinks.