I don't think it's fair to call the raid system a massive step backwards, unless you're only looking at the perspective of making the game more playable for rural players.
The raid system caused a massive revival of the game, especially when legendaries were thrown into the mix, so in terms of success, the game took a step forward if anything.
Not to devalue how boring the game is for rural players. It's basically impossible to do anything significant if you don't have enough players where you live, and Niantic absolutely needs to focus more on that aspect now that the urban players are busy.
On another note, looks like people participating in the Pikachu Outbreak event in Japan are getting shiny Pikachu. I wonder if that means all shinies are coming soon, or at least they might make shiny Pikachu global after the event.