Johnny, the lack of roots on this phal is concerning since the leaves are so nice. I would put it on sphag in a bag in low light. Also use rooting hormone on the root area to encourage new root growth. I don't believe I would set it back into a super wet environment- but that is just my opinion. Others that grow more regularly in semi-hydro may have other opinions on the subject.
Good luck with it whatever you decide for this orchid.