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I'm going to disagree
Stay with the job, don't step down. The tough questions indicate what even higher level management will scrutinize you for retaining you, even in a diminished capacity. Perhaps you were setup to take a project that was doomed for failure. I've seen some others advance just by sticking with it and showing the grit to stand tough to the challenge even when there was no hope of winning. If you are fired or laid off because of the failure, you were more than likely set up for that failure. I've hadbosses that even did that to lower level employees to get rid of them. Trust me, any successes and you'll still have to slay a lot of dragons just to get the credit you deserve, fail and you'll be castigated by those same people. It's almost a no win situation. That's why you should have been networking while you still have the job you have, never know when it's gonna crap out or when the better opportunity shows up in your life !