Well, the horror stories mainly come from the early days of this feature when people would lose their gigs, lose their rankings for good, lose their clients, etc.
However, this feature has been improved a lot throughout the years, and even though I went through those early horror stories myself, I kept my hopes high and I decided to still use it - and guess what: no problems at all
Here’s the thing:
if you have a lot of regular clients, you could suspend your gigs and dodge the horror stories, knowing that once you’re back your regulars will be back, too
if you don’t have enough regulars to keep you and your services in good shape, and still rely on new buyers, I’d recommend vacation mode because, well, buyers will get a button to be notified of when you’re back so that they can place an order.
I’ve had plenty of new buyers who clicked that “notify” button when I was in vacation mode, and as soon as I disabled vacation mode I had a flow of new buyers coming in very quickly.
And even if you don’t have any buyers coming in quickly after you disable vacation mode, it shouldn’t take more than a day or two to get back in the game (lately it’s been even quicker for me). If it takes one or two days, consider it a method of smoothing your entrance back to the Fiverr game by not letting everyone jump on you as soon as you disable that vacation mode
P.S. I heard that disabling vacation mode puts your gigs back on search a lot quicker than if you had suspended/enabled them I haven’t suspended my gigs for a long time, so I don’t know if that’s true or false…