I'm ripping three rows out at once, keeping all the stitches on the needle. It's easy, and there is no risk of dropping stitches and having to "ladder up". Just unravel the stack, four or five stitches at a time, and pick them up with the right hand needle. Not shown here, but I'm also knitting the new color row in as I go.
This is a to-be-felted bag in Cascade 220 and Riverstone.