Absolutely. It's difficult to see how that could not be a positive thing.
Part of the entire reason my organization exists is this: In the late nineties, our program founders discovered veterans were often not well served by many available civilian services, because there was such a massive disconnect in terms of those providing the services not understanding the experience. Having veterans embedded in the department creates an immediate understanding between the service recipient and the person providing those services. I would see that as a very positive thing.
To add to Mr. Thivierge's comments earlier, one of the major issues is the relationship veterans have with Veterans Affairs. I can only imagine it would discourage many of them from applying for jobs there.