I must admit, when I was new to the game, I was rewarded with a phoenix down, and I genuinely tried to revive one of my fallen teammates because I remembered from one of their previous games that this is what the item does.
Why would this be a step in the wrong direction? It is in line with their previous games and a nice addition to it.
As for more challenging content, I wish they would incorporate more mechanics that you see in harder types of content, but done in a simplistic and non-punishing manner. Most of the stuff that you learn in dungeons is Stack, Tank Buster, and spread.