S.H.
I take my kids out all the time for vacation. I hate going on vacation when it is crowded and we can go for less $$ too!
I don't think it is setting a bad example at all! I think it sets the example that family comes first and it would just be like taking PTO when you have a job.
I DO give the teachers heads up....weeks ahead of time. Then remind them. I also call the school attendance line and let them know that we will be 'out of town' for the week. I have never had anyone question it at all.
Have tons of fun!!!