Well, first, he's definitely just being a playful little guy. Second, I'm not a big fan of retractable leashes and I do think in your case you would have more control over him not attacking it if you have just a regular 4 or 6 foot Nylon leash that you could more easily hold upwards where he can't reach it aswell.
I would suggest doing some simple training in the house. He needs to be a calm state of mind BEFORE even attaching the leash. Associate leash with calmness. I would start by sitting on the ground with him and bringing the leash out. Tell him to sit. It will take alot of patience... but WAIT for that ONE moment when he's actually calm and sitting and give him a treat and say good boy (he can't just be sitting and still be in an excitable frame of mind). Or, you could even use the leash itself as a treat since he seems to enjoy it so much. Let him understand that he is not going to get what he wants (i.e. go outside and walk) until he is calm. Next, 'heel' would be a good command to teach. Practice with him walking right beside you and hold the leash up straight and high out of his reach and walk at a good pace ignoring his unwanted behavior.
Here's a pretty good video.