It was vague, but if Clark was just on paternity leave why give up the powers at all. Hang the suit in the closet and stay with the wife and kids but no need to reduce you abilities. In fact wouldn't having X-ray vision tp keep an eye on the kids and super-speed to get to them in a literal blink be helpful?Not really. First, the episode didn't say he gave them up permanently. Like the other meta "jokes" and references in the crossover, like Sara saying she didn't want the Legends involved in another "crossover" and the Monitor calling last year "Elseworlds," Lois' "about a decade" quip to Clark and the fact that the newspaper articles stop at 2017 with Lex president (the finale stated Lex was elected in 2018), it's almost certainly meant to be the fall of 2019. That being the case, Clark's daughters are twins and likely only about 4 months old. If it's meant to be exactly 10 years since his Superman debut, he could have a 2 year old and a 1 year old (and that's only if Lois got pregnant the second time almost immediately after giving birth to her first daughter). Second, neither the script nor any of the writers have said it was a permanent power loss. Meaning, Clark basically just took a year of paternity leave either for <1 year old twins or 1 year leave first for his 2 year old when she was a baby and another year off as his second baby grew to a year old. As far as what the show explicitly stated and implicitly suggested, this is not a long term retirement.
Second, this Superman may have only been a public superhero for about a decade, but he had been saving people since was a teen and been working as a hero in the shadows for about 3 years prior to becoming Superman. He defeated almost all of his major villains and has a host of superfriends ready to pick up the slack. He's also not unlike Hoechlin's Superman who said in the first COIE episode that he had intended to "give up the cape" to be a father. Meanwhile, you have other Supermen, like the one Routh was ostensibly playing, who in Superman II and Superman Returns gave up his powers to be with Lois or abandoned Earth to seek out the remnants of Krypton, which are not exactly superior reasons to make such a decision.
I will say, contrary to others' claims, SV Clark was not presented as someone who wanted to be normal or not be a hero. He just didn't want to be a freak. He was also a teenager who was figuring out his identity. The show was his journey to wanting to be a hero and embracing that. There are several lines throughout the final seasons that make it very clear that Clark wanted and liked being a hero. It's not "in character" for him to regress back to turning away from that. And that's the key here, he's not regressing or turning away. He's just taking a break. Part of his journey was also learning to reach out to people and trust them. That's what he's doing now with his team.
I think it's fine. That being said, the truth is what was presented left plenty of room for interpretation; it was so vague. If I'm angry about anything, it's that they were so ambiguous. It makes interpretations, whether they're more optimistic or pessimistic, equally valid, which means it's difficult to have anything but mixed or confused feelings about this. I would have preferred something clearly positive as opposed to this mixed bag.