Evolution or Devolution?

Sometimes this question surprises me: are we evolving or devolving? May be there are answers for these already, but need to find those.

First of all, if we are evolving then we should be moving from smaller forms to larger ones, or more fine tuned ones. But on the other hand we had huge dinosarus and we now have smaller version in lizards and other reptiles!! We had enormous mammoths that have become the miniscule elephants. We had powerful gorillas who have lost physical strength to gain some mental strength. The last example is certainly the poorest, I know, but in general what are we evolving into? What next? Will we continue to evolve, but evolve into what? or are we perfected? I dont think so, because science cannot digest the concept of perfection. Anyway, suppose that we are evolving, then why are our memories, life spans and everything else coming down (yes, our initial survival rates may have improved, so have worries, tension, stress, strain and other psychological issues more than ever before)? We have created the most problems known to mankind, destroying every possible resource. Morality and compassion is soon becoming a rarity. Should not evolution make us better, in improvements? So the question comes back to haunt us: are we evolving or devolving?