Jughead did not sink the island because how in the world did Sawyer go back to the house he shared with Juliet and find the ring? If Jughead sunk the Island in 1977, then it would be underwater, unless it resubmerged. Everybody on the island would be dead, unless the island is full of life rafts. And what about the Temple and all the people at the Temple and all of Richard's people? How are they still on the island in 2007 if Jughead sunk the island?
Somebody's got to go back in time to sink it before Ben gets to the island and is shot. How do we know this? He is Mr. Niceguy teacher. Everybody is different in the new 2004. We are seeing what happens when Jacob does not meddle in the Losties affairs.
Jughead was necessary to get them back to 2007, but it is not what caused the reset.
And I know somebody's going to say, "But, the writer's say there's no more time travel." I don't care if the writers say that there is no more time travel; they lie all the time about what's going on in the show.