It's hard for me to answer because when I first graduated I wanted to work ICU and would have jumped at the chance had it been offered to me. I can only give my perspective on what I gained from working Med-Surg.
I reluctantly took a Med-Surg position when I could not find my "dream" position in ICU, but I think it is the best decision I have made for my nursing career. I worked in a small hospital so the Med-Surg was a general floor, which meant I got to see everything: pediatrics, lots of post-ops, ARDS, renal failure, COPD, CHF, telemetry, even post-partums...and our floor also had specialized "step down beds" so I also got experience with insulin drips and DKAs, chest tubes, cardiac drips, CVP monitoring, "stable" MIs, etc. Depending on patient acuity I could have anywhere from 3-7 patients. When I decided to apply to a critical care position again, I was hired 10 minutes after I walked out of my interview. They were impressed with the variety of patients I had, as well as the number of patients I was able to manage. They also spoke with me about having difficulty with new grads because they're having to teach the basic nursing skills as well as the critical thinking skills that come with experience, on top of trying to teach critical care.
I don't think you have to work M/S to be successful, but I don't think new nurses should look at it as "settling." Med-Surg is definitely a specialty, and you can learn a lot to take with you in the area you hope to go in.