Actually, he valued old traditions and the way life "should be" in many episodes of TNG. It makes perfect sense for him to retire anywhere But a place where he would not age.
Though I do think the place he would most likely of retired, would be the United Kingdom on Earth, since that is where he was born... His "Family roots" was very important to him, as I recall.
That would be interfering with the already inhabbited culture. If one guy went there, more would join until it became overcrowded. The population would try to change the ways and the Ba'ku would loose all they had. Cats are ok, i think it would be a good place for Spot to retire :3