As a middle/high school teacher for 9 years, here are my thoughts.
1. As far as legal stuff goes, a lot of districts have harsh policies on the books, but they are not enforced. I never once saw a family taken to court for taking their kids on vacation. A lot of those rules are there in case there are other issues, it's an easy way to get someone on a technicality, when the other stuff would be harder to prove. Not saying this is the case with every district, but before you assume you "can't" take them out, talk (face to face) with the teacher or principal. You might be pleasantly surprised.
2. When making the decision, the biggest factor should be how well your child is going to be able to catch up on the actual knowledge they missed learning. I see so many people worried about grades, and how many assignments, etc. But the real loss is the loss of instruction time in class. That can't be made up. If your child learns easily, and without much help, they will be fine. If they struggle at all, it's going to be tough and have lasting consequences.
3. I used to be very much against pulling kids out for vacation, but my stance has softened a bit in recent years. Do what works for your family. Family time is important, and if you are confident that it won't cause major problems, go for it. As long as both parents are on board. if one is hesitant, it will cause way too much tension to be worth it.
4. Personal situation - for the first time ever next year we are going during a non-break time. DD is doing a virtual academy for her school, so most of her work is done at home on our own schedule anyway. The only things she will miss that week are the one-day enrichment class (which is optional anyway) and the 1 hour meeting with her teacher to check her progress. Plus possibly a day of a co-op class if any are going on that month. But we decided that was worth it to go at a time when it was less hot, crowded, or expensive. DH never would have been okay with taking her out of normal school for a week, so this was a great opportunity for us to do something different this year. Our district does a two week spring break in March, and we will simply work through one of those weeks to make up the time.