I think there are differing viewpoints on this and good reason to believe either, but I think that if you rotate at a big name place and get a hot-shot letter, you benefit more. I believe this because I think the mid-tier and lower-tier tend to take their own, especially the smaller programs. Since the program is so small, when all things are equal, many prefer the 'known' quantity and also there is the desire for programs to reward those students that have contributed to the department over the last few years. The upper tier has their own brand of incest, and I've already spewed my views about that.
That being said, depending on your fourth year curriculum, you could most likely do at least one top program and one to two mid-tier programs, and see what happens.
-S