Ethan came back home with a serious Star Wars jones, and thanks to the TanMan, we started watching the first trilogy. In reverse chronological order. Anyway, here is my expert opinion on the thought processes of the various characters at the end of the movie.
Obi Won Kenobi: "Sure, Anakin's got to be in an incredible amount of agony, and as they say, better safe than sorry, but rather than put him out of his misery/ensure that a tremendous threat is dead, I'm just going to walk away. I mean, it's not like Darth Sidius is going to show up, rescue him, and put what remains alive in a walking tin can, right?"
Darth Vader: "Wow. An incredibly advanced society with tons of technological advances, and you can't even manage some decent skin grafts?"
Yoda: "I am too old for this shit. Yes, it's the most obvious place to put him, but I really don't give a crap that everyone will be able to figure out that Anakin's kid has been placed with Anakin's only living relatives on Anakin's home planet. Let Darth Sidious kill him in his infancy. I just want to go back to the swamp."
Darth Sidious: "Yeah, it would really cost nothing whatsoever to send a scout ship to Tatooine to see if Anakin's kid is still alive. But hey, if the Jedis say Padme died during childbirth and the kid died with her, that's good enough for me."
Padme: "I need a new agent."