His rush in to develop digital technology was done to make it possible for people to make entertainment without as much cost. It cost him a ton to do it, but as that technology he helped develop matures, it will keep getting cheaper and cheaper until you can make a movie without the huge investment risk.
Digital distribution means being able to sell your content without investing a whole lot in distribution. Film makers will no longer need the big bucks from the movie bosses to do that, cutting them out of the picture. That's what Lucas has been trying to do all along is taking the creative decisions away from the bean counters and giving it back to the creators.
He's not talking quantity over quality, he's talking about making it easier to acheive quality for less money.
And for those of you who think Lucas isn't capable of quality himself, these technologies he helped develop are helping everyone make movies with less money up front.
This investment in USC is money he is putting into other people's potential creativity, not his own.