I'm in a somewhat similar situation--almost finished with my (partially-funded) MA, and not sure if I should pursue a PhD or try to teach. I will say, as someone who has 2 years of experience with graduate coursework, that I would absolutely *not* recommend pursuing a PhD if you're feeling "meh" about it. The MA workload is already stressful, and a PhD in English can often take 7 years or more to complete, even if you already have an MA. That's an enormous commitment. What might be a good compromise, if you're still unsure, is to look into PhD programs that require you to complete all of the requirements for an MA in the first 1-2 years. That way, if the PhD track turns out it's not for you, you could potentially withdraw after completing the MA. [Disclaimer: I have *not* actually tried this approach myself! I do know people that have, but my advice on that matter is heresay:) ]
With that said, I have rather different feelings than most of the other posters in this thread about attending a program that allows you to teach immediately upon beginning your studies. I took several pedagogy classes *before* teaching, and my assistantship required increasing levels of responsibility and work. I absolutely cannot imagine teaching my own course during my first semester; yes, many many programs work that way, but not necessarily for the better. I think that approach cheapens the importance of pedagogy for both the institution and the students. Again, this seems to be an unpopular opinion, but keep in mind that teaching immediately upon beginning your studies is not necessarily going to make you a better teacher or scholar, nor improve your job prospects.