So Lucas = Freud? WTF?
I, on the other hand, hadn't thought of this time line, but seeing more development and exploration of the time post-creation of Vader and pre-ANH would have been exciting to see.
I do not see the need for the separation issue, he could just as easily been an orphan and achieved the same impact. Granted the Tusken Slaughter is helpful in the development of Anakin's 'character' but I think that could have been achieved with similar, but different motivation for Anakin, a different love interest say. Then we wouldn't have had that weird dream sequence. Bad dream my ass

Pitch a tent much?
Taking Scott's suggestions though are very appealing: no waste of time with a wooden young Anakin. No/less sound of music love story type scenes in II.
As a digression though, I'm a bit baffled by Lucas and some of his comments. He has indicated (yes, here we go again) that Han couldn't have shot first as it would diminish his character to a simple murderer (something I think wasn't beyond Han initially) rather than just a scoundrel of sorts (we'll ignore dictionary definitions for the moment). Essentially he's saying there's no merit in having a murderer (Han) redeem himself through his actions. Yet in contrast and by parallel we have Anakin/Vader, someone that essentially becomes a reasonable example of a mass murderer in a somewhat Nazi-esque style (torture, execution, blowing up a whole planet with billions of people) and redeeming him by saving his son, one single individual is ok? I don't see how this isn't a conflict in his own ideology. Yeah, I know, let it go, but really.