Phil Fish is a talented game designer who is also blunt and insensitive at times, just like everyone else on the planet. He has his failings - who doesn't? Who hasn't said something insensitive? Who hasn't been blunt? There is this expectation that because he is famous, he should "act" a different way, be held to a higher standard than the rest of us. Why? Why should they be held to a higher standard? For that matter, why are the rest of us non-famous people afforded the privilege of acting at a "lower" standard? By all means, call Fish out when he acts like a jerk, but call EVERYONE out when they act like a jerk. A non-famous person doesn't have the "right" to be an asshole too, you know.
Fish is blunt and has overreacted in some instances, but a lot of the hate that is generated against Fish is due to the fact that he actually spoke to people the way some people spoke to him. He told off people who were rude, and that SHOCKED, SHOCKED the people on Twitter who were rude to him. "That Asshole!" they cried, "Just because I called him an Asshole, he has the NERVE to call ME an Asshole!?"
Fish isn't blameless in this. For someone has supposedly intelligent as he is, he seemingly has no idea that his blunt statements can be considered offensive. His "They Suck" remark about Japanese games, while far from actual racism, is a pretty crude, thoughtless statement. He should have thought about his responses more clearly. And he is too sensitive. Many other game developers manage to deal with hate, and deal with it in such a way that more is not generated. Fish is part of the vicious cycle of hating Fish. His detractors on Twitter aren't going to break that cycle - he has to. And with quitting development, maybe he has.
I will just like to say that whatever you think of Fish, Fez was a remarkable game in many ways and I was looking forward to Fez II. However, I don't think Fish is going to stop making games forever. 2 or 3 years, maybe, but I think he'll come back. Eventually.