Yes I concur: CTEs is closer to the spirit of relational algebra: every step/expression should yield a table/relation.
As data munging is about combining/correlating/sorting/grouping data, why not have a sound (bag) algebra to do that? Such algebra would give us equational reasoning, proofs, etc.
And consequently: students would be learning an algebra which is easier to learn IMO.
I find them to be a huge step forwards in terms of adding composability to complex queries.