As far as I know, he's not officially retired. But he has fallen off the radar; he apparently doesn't even respond to NBA calls.
Latrell didn't get the contract he felt that he deserved, so he didn't play. If someone believes they are worth 'x' amount, then so be it. Can't knock a dude for believing in himself. I still think at 37 he is better than a few NBA players now.
I got the impression he treated the NBA as his job and nothing more; not as something he loved to do. He probably loves basketball, but I don't think he liked the NBA as a business.
I also thought he never liked the stardom either....I assume he is just as happy not being in the public eye and not considered a major sport-celebrity like his days in Golden State, New York and Minnesota.
I am a Sprewell fan: I miss his game and intensity. I consider him one of the best and basketball purists would agree. But I don't expect to see him back. I'd say he is content with the fact he made it, he is able to live his life the way he wants and he is no longer under anyones contract. He's probably enjoying life now that he's Latrell Sprewell the businessman, the auto shop owner, and family guy.
He wont be back as a player. And his past makes returning as coach pretty slim too. I'm disappointed I never got to see him play live!