Mixed thoughts to be honest. I always enjoyed Orton, even during his lackluster run as champ the past months. I enjoy watching him in the ring, his matches are always at least decent. I think the WWE made a mistake by making him the chicken heel and not the 2009 psycho heel that everyone wanted. I believe this made many people kinda disinterested to him and for good reason.
Does he need a break necessarily? I don't think so. He can just change it up. First of all, I think he needs to step away from the Authority thing. In general, the whole Authority thing needs to go away, and Orton can then proceed to have his own feuds, possibly in the mid card. Cesaro can turn face / tweener and feud with Orton.
For the moment, I strongly believe that Orton needs to step away from all the spotlight and go in the mid card. It would be the best for him. He will be in matches that will make people interested, but not clog the main event scene from other rising talent. After doing that for some time, he can probably enter the main event scene once again, if needs be, and enter his psycho mode again. This can happen in 2015. I really doubt it though. I believe by that time, the younger talent will have already replaced him and he won't be needed.
It comes a time where we need to realize that Orton might not be so interested in pro wrestling anymore. He has been in the business since 2003 I believe, and with the increased exposure he has had since his debut pretty much, I find it reasonable for him to not find much of a motivation to want to keep going. He has done it all. Main evented WM, 12 time World Champ, youngest World Champ ever, first ever WWEWHC, Royal Rumble winner, MitB winner, top heel in 2009 and so on. I can't see what keeps Orton going at this stage, apart from the money, the friends, the fans and the girls.
Me, as a fan, see Orton like that, so I can't find him as appealing as I did 5 years ago, exactly because he doesn't have any motive, at least in my mind. Him taking a break won't change that. He can still entertain me, but it isn't the same. Does he need a break? For some people maybe, but not necessarily. As I said above, he can get in the mid card, and a year later return to his psycho gimmick.
At this stage, I wouldn't mind see him retire though. It seems like a great time for him to do so too. He is 34 or something. He hasn't had any serious issues, he has tons of money too.