I can answer this question from every angle. I was a child that was taken out of school for a week every year, I'm now a parent of two small kids and a teacher (from a family full of teachers). From all points of view, the only answer is it's a very personal decision.
Student - I was an A student up thru 7th grade, but never seemed to be able to recover from a week away in 8-12 grade, especially if I ended up missing more school due to illness. Some kids have no problem, for others it can be devastating - especially in the higher grades and those with block scheduling.
Parent/teacher - there's nothing more important to the success of a child then a strong family.
Teacher - it's so heartbreaking to watch a student who was having a little trouble before s/he left, come back after a week away. I'm thrilled to see students go on vacation, except that it makes me envious. The only thing that would/should upset a teacher is when we are notified the day before that the student will be out for a week and needs to have all the work, then nothing gets done. I also agree that recess should not be missed to catch up.
Work with you child's teacher - from the minute you learn about your vacation. If possible, discuss it with the teacher(s) even before you make ressies. Most importantly observe how well your child bounces back each year. Every year will probably be more difficult, so keep that in mind when booking next years trip.