In iOS 8 beta 3, audio with 'loop' set to 'true' has a momentary pause when the sound restarts. The audio should be able to loop seamlessly.
Did this happen in iOS 7, as well? When testing, I do get a moment of silence repeatedly, but not at the time when "now" is printed. I can't test on iOS 8 at the moment.
This is a valid request. Does any other browser support seamless HTML5 <audio> looping yet?
I don't think any other browser does this yet, nor did iOS ever support it. You might want to double-check this with your own audio file, I'm finding it hard to find an AAC encoder that doesn't pad with silence in the audio file itself.
*** This bug has been marked as a duplicate of bug 230553 ***