I would stop playing when I realized I was leaving my A-Game and starting to tilt. But when you have it under control there is nothing against playing on. Stay cool, listen to the music and think back to situations when you did something stupid and in the end were lucky to win. That makes it easier for me to process a bad beat.
I fully agree with the first part of what you said, but the thing I would be careful to acknowledge is for some people, there may be a grey area where they are unsure if they have tilt under control or not because it comes in different forms. If you exhibit any of those symptoms, it is best to step away.
If you're unsure of the various forms of tilt, here is an article that will be helpful for you, by Jared Tendler, who wrote the book "The Mental Game of Poker".
https://www.pokerstarsschool.com/lessons/seven-types-of-tilt/
I do like the strategy of laughing at yourself, where you mentioned when you did something stupid (quoting you), and understand that we all make mistakes when playing, and we all do win our share of those situations.
Also, we all process these situations differently. Some people can just shrug it off and continue playing, but others may need some time to blow off steam. It's important to know where you fall in this spectrum and act based on your own individual situation.
Yes and no. Do I take a break when its going bad and I cant seam to win? yes when the game is not fun or I see I am starting to play scared. Taking a few days off to decompress helps a lot at least for me. But when you do you also need to look at your game. There have been times when I review my bad run and it confirms the poker gods are not being nice to me but there have been many time I see its more my fault that the cards.
I think taking time off can be really good because if you find you are putting in a LOT of volume, it may start to feel less fun because after all, it is a game, and we should enjoy playing it. Having some separation from it may be healthy as well because after a few days pass by, you will start to get that itch to play again, and when you are about to fire up your session, you are excited to play. Everything we do should be about balance and to know what is healthy for each of us.