I'm not really surprised by his reaction. My daughter and her family saw his live show recently and, at the end, he just walked off the stage without a word. No-one knew whether the performance was finished or not...People just trickled away as they gradually accepted that that was it!
I do think Bob, like many other performers, should have retired years ago. My daughter said the show was pretty awful, and the people sitting in front of them all fell asleep. Quite a few of the audience crept away whilst he was still singing. (Doesn't apply to all older stars, of course - the same daughter saw Paul Simon perform live a few months ago and said he was brilliant.)
Having said that, I have to out myself as a Dylan fan since my early teens. Some of those songs still stir my blood when I hear them - like "Hattie Caroll," "Chimes Of Freedom", "God On Our Side," "Hard Rain", "Idiot Wind", "Shelter From The Storm"...Too many to mention, in fact. I'm happy he has been given the Nobel prize, as I imagine that his writing has a lot of significance for a great many people. I can't imagine that it's going to start a trend, and I expect that next year's award will be a more conventional choice.