It's obvious that Lucas was not happy with the Jabba scene as it played out in 1977. Jabba just didn't come off right and the scene was redundant. Lucas took the opportunity in ROTJ to push the Star Wars universe by making Jabba a big alien looking slug, and that was definitely more appropriate.
There was absolutely nothing in the Lucas interviews or anyone else's comments that the Jabba in the first film was supposed to be a slug. Not even Lucas' comments in the documentaries touch on that.