It appears I'm late again. Allow me to step in here as a Lucas apologist and put my two cents in. First of all, if all Lucas was concerned about was money, he could have released Star Wars on DVD a lot sooner. There was NEVER a VHS or DVD release of any Star Wars material that didn't incorporate some significant technical improvement. You have the original individual releases, the first trilogy boxed set, the THX boxed set, and then the special edition boxed set. That's it for VHS. The special editions have been issued ONCE on DVD, and the original cuts ONCE on DVD. Yes, tons have money has been made off of merchandising--like any other fucking genre film in the last 30 years.
Secondly, I take issue with the notion that Lucas is a bad director. Getting good performances out of your actors is certainly not something that Lucas excels at--seasoned actors tend to fare a lot better. But to me, a rate a director primarily on his visual skills, and in terms of frame composition, Lucas is up there with anyone in cinema today. He has a classic style inspired by Ford and Kurosawa, and knows how to fill a widescreen shot. Granted, the prequels often feature too much clutter in these frames, but the compositions themselves are first rate. He's also a great director of action scenes, despite relying too heavily on cross-cutting in ROTJ and Episode 1. I'll grant you that the original Star Wars doesn't feature very interesting filmmaking, but considering the man had already made the extremely sophisticated THX-1138, it's clear to me this was the intended style. The prequels, by comparison, are much more sophisticated than the originals in terms of their compositions and montage.
Peter Jackson, on the other hand, relied way too heavily on sweeping overhead crane shots for LOTR, and that awful Zombie Cam crap with the altered shudder speed. Total amateur hour technique. He's a great director of actors and a great storyteller, but the images in LOTR triumphed more because of the art department than any superior shotmaking skills of the director.
All this SW and Lucas hate is coming from a James Cameron fan? You talk about the prequels being terrible but Jedi watchable because of great individual scenes? The Phantom Menace may be a mess but it has a wealth of great scenes and moments. The same goes for Clones, and Sith I don't even feel like I need to defend. You may not agree with the man's vision, but it is HIS, and there are plenty of ways he could have gone the cheap moneymaking route had he wanted to, instead of waiting for technology to catch up to his ideas.
A gallery: