I don't think so, or at least I don't think that's the primary reason. I think the idea is to have people develop a breadth of experience working on different types of problems and in different countries. If you're a specialist in, say, the Middle East, it's good for your career and for State if you have experience in a variety of different countries in the region.
I think they also try to have foreign service officers do different types of jobs
(aside from technical jobs like communications specialists, who always do the same thing) for instance, I think most of the foreign service officers have to do a consular rotation where they're working with people on passport or immigration or travel issues rather than on political or economic issues.