Bacteria can take up small sections of DNA, true, but remember that these organisms are hundreds of times smaller than eukaryotic cells: there's not enough room in them to take up a whole lot of foreign DNA, even if they've been rendered competent to do so. Usually what they pick up is individual genes; things like bioluminescence or antibiotic resistance.
Gene therapy is the modification of eukaryotic (usually human, or at least mammalian, when used in conversation) genomes. The method being experimented with now involves packaging genes into viral capsids and then allowing the viruses to infect the host; rather than delivering parasitic genomes to their target cells, however, the viruses deliver the corrected version of some gene that the host lacks (say, for insulin production or phenylalanine break down, or whatever). Experiments with humans have been started, but in at least one trial one of the patients died from a severe immune reaction that was thought to be due to the virus used to transfer the DNA.