The 4017 is a counter AND a (10pin) decoder, intimately connected internally.
If you wanted to drive 2^n LEDs (one at a time) from n pins on an Arduino, you just need the "decoder" part, like a 74hc45 (10 outputs from 4 bits) or a 75hc138 (8 outputs from 3 bits)
If all you want is a giant chaser, you can cascade 4017-style chips together without any arduino, but it's somewhat limited in its flexibility.
Or the other way, an Arduino can "somewhat easily" make a chaser with 182 LEDs (14x13 array using "charlieplexing") with no additional chips at all. With full control over the pattern, etc... (and then you can take it apart and do something else.)
If you're willing to build your own board, the "Arduino guts" are about $5, rather than $15-20. Or closer to $3 if you're willing to go back in time and use an ATmega8...