Does resting stew lead to more succulent meat?
It has nothing to do with meat absorbing liquids, that doesn't happen just as you explained it. Once meat has become dry, it doesn't get succulent again by somehow spongeing up liquid. The recipe is right to have you wait before serving though, because the flavors keep improving at least for the first day after cooking a stew. It is about aroma, not about texture. 

For more detail, see What causes flavors to &quot;marry&quot;? and What happens chemically when flavours &#39;mingle&#39;?, probably also other questions.