We are taking out first ever trip to WDW in January! (myself, husband, and 2 kids ages 5 & 7). Should we still try to take a 4-5 hour midday break at our hotel, even though the parks close relatively early compared to other times of year? We are staying on-property (Wilderness Lodge) and renting a car, so transportation shouldn’t be a problem.
Only you know your family’s endurance level, but I don’t think a long midday break is necessary every day. We usually take them most often in the summer, when it’s hottest, and use that time for some swimming. You probably won’t need a heat /swim break in January. It’s more just for rest (or to get out of the parks while the crowds are at their peak). So maybe schedule a midday break for a day or two when you plan on staying late to see fireworks or whatever later evening shows, and then other days a long TS meal or even find a CS location where you can sit for an hour or two? Or visit a resort near the park you are touring? Or find some calm quiet attractions to put in the middle of the day, like CoP, HoP, or Ellen’s energy adventure, the findin nemo show, etc.
We never take big breaks. We do rd to 2-3 or 2- close.
We do September and January trips. In September, yes we find we need the breaks, nothing like dropping the core temperature in the pool for an hour or two. In January we find we just don’t need them with the cooler temperatures.
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We had our very first trip this past February (me, DH, DD6, DS8) and once we came back to our resort we never wanted to go back to the parks!! Our days consisted of rope dropping/ pre-rope drop ADR and going til 3…it was perfect for us. I based our times on how we would normally tour our local zoo. We all had a blast and everyone saw what they wanted. Enjoy!! 
Thats how we felt. With my kids being slightly older 13/10 the long lie, late lunch then hitting MK for parade -close worked well for us. We did do AK rd and close out Epcot in 1day w/o a break and rd to close at HS w/o a break also but both times spent the next day resting.
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I cant take breaks at Disney. too much to see and do. We rent stroller for the 5yo and keep going until our legs give out. Usually leave hotel before 9am and don’t return until 11pm or later. We use sit down dining reservation times as our “rest”.
In MK consider Tom Sawyer’s Island as a break. It’s fun to explore, they’ll have a blast in the fort and you can sit down for a rest! I left my DS10 in the fort while I explored the rest and then went back for him. He was still quite happily aiming at BTMR riders across the river. Yours will be a little young to leave but it’s a rest. It felt like a haven, totally un-Disney which means they can re adjust from the hype.
I’ll think about other possibilities. Epcot - check out the model railway in Germany. That’ll keep them amused for an hour if you’re lucky. Maybe half an hour then.
While all these folks above don’t need a break, I do. I find that I enjoy my self more if I’m not dragging myself back to the car each night. I usually take a 2-3 hour rest from the park though, not 4-5 hours. I too am planning a trip in January and since the hours are shorter, I wouldn’t suggest a 4-5 hour break. My friends and I will go to a park in the morning/early afternoon, take 2-3 hours off, then on to a different park for the late afternoon/evening. One benefit of the shorter hours, you don’t stay up so late, so being at the park for rope drop is much easier.