Voted that a time out was good, but I think if circumstances were different (ie. no pandemic) they would have been fine to keep going. It does feel that enough people feel satisfied with Endgame marking a more formal ending point that they do have "start over" or at least do some more legwork to convince some audiences that what they have instore is still worth sticking around for and getting invested in. I think if GotG3 wasn't delayed out of 2020 due to Gunn being fired, it would be easier to maintain the momentum. I also think if Black Widow and Eternals would have been able to release as planned that more people would be slowly coming over along with how Far From Home already started that process despite people saying they were done a couple months before but then want to see what happens for Spidey.
On the whole though, I don't think they needed a time out and the pandemic throws a significant monkey wrench in the timing of everything because they were on the precipice of releasing a ton of content with Disney+ and 2021 was looking to have more movies/shows/content than the MCU has ever had in a single year and now the delays sort of stifle their plans which seemed so thoughtfully laid out.
That being said, I think that the absence will only cause more demand for the next films since there are many fans that haven't tired of these films and there are many more ideas and characters people are excited for on the horizon. I think the break will make many people appreciate the MCU even more. Hell, when the U.S. first went into lockdown, there was immediately reminiscing on the theater experience and specifically in regards to how people reacted to Endgame. That is one of the biggest arguments for movie theaters and the MCU is at the heart of that blockbuster theater experience for many people and it would potentially be one of the biggest losses for many if theaters all died due to the pandemic, not just because of the loss of that experience for the MCU films alone, but, predominantly for many people, that experience (more than most films today) exemplifies the best aspects of the theater going experience.