Personally I think taking time off is good for growth. Sometimes we may need the time to just kick back and check in with ourselves. How are we feeling? Are we ready to move on? For me moving onto grad school or work is terrifying. Some may opt to take time off to just take a break mentally which is good for your mental health! I didn't choose to apply to medical school this year while all my classmates were. I felt that I just wan't ready or mature enough to take on those responsibilities. I wanted to take my time and re-evaluate myself, do some mental check-ins, get some more life experience first. Often times we focus so much on WHAT CAN I BE DOING and not HOW AM I DOING.
And grad school apps take time! So maybe having some time off to just travel, work, and focus on apps could also be good for you in the long run!
But if you feel like at the end of the ltitle break, you wouldn't want to go back to school.. even if you wanted to.. then by all means follow your instincts and continue onto grad school ! (:
Just my two cents!