As far as whether to keep writing book one or go on to book two, I don't know what to tell you. You'll have to make the final decision. There will always be new shiny ideas around to distract you from what you are doing. On the other hand if your current story is dead and going no where, it might be time to cut your losses. Only you can decide that.
I do have to admit that I don't understand your problems with your current story. If you are part of the story from the beginning then there isn't going to be much back story. I have read some great stories that start you at the beginning. As far as the character being conflicted, I love stories about ordinary people being caught up extra ordinary events and, just maybe, discovering that they are not as ordinary as they thought. Just because a character starts out without being conflicted does not mean they will stay that way to the story's end. Maybe the reader gets to go along for the ride as the protagonist is exposed to people and situations that create the conflict in the protagonist's life. You don't need a backstory or an already conflicted character if the let the reader watch it all develop within the story.
