Workers dedicated their time to the service or their nation and when it's time for break I think I agree with you on the need for more holidays.
Like the Eid you use as an example, back here it's just two days holiday and imagine spending one day on the road and then only a day to celebrate with family, it's not idea.
Your suggestion of 7 days upward would be great and give workers enough time around to celebrate, and relax to come back to work stronger.
Yes, I think we need more holidays and I think few days of more holidays on create too much impact economically. Unfortunately most of the businessmen mayn't try to do it.