I got my MA, and I think it was the best decision for me. At the time, I wasn't able to move to get a PhD because my husband was still working on his degree, and to be honest, I wasn't 100% convinced I wanted the PhD. Well, I wanted it, but wasn't sure if I had what it took. I also received my MA at the same place I received my undergrad, which some people believe is the kiss of death, too. Again, I didn't have much of a choice, but I enjoyed it, and I was able to teach, which a lot of MA students do not get to do at bigger schools that have PhD students, and I believe that has helped me tremendously. I have been able to teach during my time off before applying to PhD programs (was waiting for my husband to finish up school), which has not only given me great experience, but it has really solidified that this is, for sure, what I want to do.
In the end, I think only you can answer what is the best decision for you because there is no standard of what schools want, so do what is right for your situation and hope for the best!