Interesting you should bring that up. I remember some debate here at some point wondering whether or not, in context of the original film, Jabba was a native of Tatooine at all. Similar to the debate over whether the brown robes are Jedi robes or just Tatooine garb, it seems to have just become an element so ingrained into people's perception that, when it was time for those elements to be fleshed out, George just went the easy route. This is one of those things that I suppose I can give him the benefit of the doubt for, since we'll never know for sure, and, unlike a lot of his cover-ups, it's not glaringly obvious. However, I agree that it makes more sense that Han is simply hiding out on a planet far removed from the crime boss (planet that's the farthest from the bright center of the universe), and Greedo just happened to track him down. The only other thing we have to consider is the fact that, despite the fact that the scene was cut, Han did encounter Jabba that day in the docking bay. So is that evidence that he did live there, or did Greedo alert Jabba with enough time for Jabba to follow up on that personally from wherever he was? I guess we'll never know for sure.