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Functionality already in LabVIEW. NI LabVIEW 2010 changed default number of steps to 99.
As we us Ctrl+Z for other program we can go quite back but in case of LabVIEW we are usually limited for 4 to 5 steps only. I think there must be some option to go back more step because some times in block diagram it happen which bother a lot specially if your not in good mood 🙂
LV 2009 raised the limit from 8 to 30. You can raise it as high as 99. Various people argued that the default should be 99, but we still have users that work on low-memory machines for whom the higher limit would be a problem -- most edits don't require huge amounts of undo information, but some do, particularly some "make current value default" operations on large arrays. 30 was the compromise.