I agree it's taking a step backward in a pure technological sense. However, this step backward from Bitcoin is necessary to move everything forward.
It would only be a step backward if the IOU system was all there was, but it isn't, there is also XRP, which is a (small) step
forward compared to BTC. More importantly, the IOU system combined with the distributed exchange is a major leap forward compared to Mt Gox and its competitors. So in effect Ripple is a huge step forward, and not a step backward.