It's a tough call, in my opinion. you make a good point about how stalling can really hurt tournaments. however, many people desire alot of vacation time and use it properly. there probably is no perfect answer for this one but if people are willing to pay extra for the additional vacation time, it seems fair. people may need "vacation" time for such things as sickness and emergencies, as well.
Sould thre be a limit on vacation time?
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Someone using their vacation time to go on a holiday or take a break is one thing. But should people really be allowed to put their games on vacation for 2 months +? This can hold up tournaments and can be used as a stall for time, if they are going to lose, but there opponent is about to make a big jump in rating. Restricting vacation time to 3-5 weeks would be much better, as right now the length of vacation time causes more annoyance for all, then benefit.