I live in Australia and I've never ever heard of anyone here having a problem when taking kids out of school to travel, whether it be overseas or domestically.
From reading this forum and other US based ones I am on (for different subjects), I too was shocked at how some (most?) US schools seem to be so aghast at parents taking their kids out of school (to travel).
When I was in school we studied Fiji for several months. It was abstract and rather meaningless. Different currency/language/way of life? Umm yeah. Okay. On the other hand, my kids have been to Fiji several times and can enthusiastically tell you about the different currency/language/way of life. I defy any nameless bureacrat to tell me that my kids would have been better off stuck in a classroom for 2 weeks instead of actually experiencing these things for themselves.
I know of kids who have missed entire terms for a family trip to Europe. It hasn't impacted them negatively at all. Last year one of DS's friends travelled to Borneo during school time with his family. Hmm, let's see - spend a week in school doing all the normal stuff or getting up close with the animals in the wilds of Borneo?! Who needs to think twice about that?!!
Due to my husband's work situation we need to be flexible with our holiday plans. We try very hard to incorporate school holidays but if it doesn't work in with our plans, and if it means they miss school for a few weeks, then so be it. We usually take schoolwork with us, and I have learnt from that that we would definitely not be good candidates for home schooling, lol.
Primary schools in my state are from prep-grade 7. DS1 is in grade 7 this year and DS2 is in grade 4. We've taken them both out of school for between 2-4 weeks to travel overseas on several occasions. It has never impacted on their (high) grades or any other school related activity.
This year they will miss almost 6 weeks when we travel to the US. Their teachers are absolutely thrilled for them that they are being given this opportunity! Heck, some of the teachers at our school have taken their own kids out of school for overseas travel.
Next year when DS is in high school, will we still do it? Probably/maybe not. Having said that though, if the right opportunity comes along then we'd seriously consider it. There's a possibility that a trip to China and Singapore may eventuate. If so, my kids will be out of school again for at least part of the trip.
My parents took me out of both primary and high school to travel overseas and it never impacted negatively on my school life. All these years later can I remember what happened in school those particular years? Barely. Can I remember the details of the trips with my family? The happy memories and being immersed in a differrent country's culture? Absolutely!