Perhaps. Though if you go back to book two where Lan teaches / explains this move to Rand (it isn't so much a form exactly), he was very clear that it is a last ditch, pretty much prepare to die for your cause, sort of move.
*SPOILERS for Book Two*
“Suddenly Lan was at Rand’s stirrup, in his gray-green scaled armor that would make him all but disappear in forest or darkness. “I need to talk to you, sheepherder.” He looked at Loial. “Alone, if you please, Builder.” Loial nodded and moved his big horse away.
“I don’t know if I should listen to you,” Rand told the Warder. “These fancy clothes, and all those things you told me, they didn’t help much.”
“When you can’t win a big victory, sheepherder, learn to settle for the small ones. If you made them think of you as something more than a farmboy who’ll be easy to handle, then you won a small victory. Now be quiet and listen. I’ve only time for one last lesson, the hardest. Sheathing the Sword.”
“You’ve spent an hour every morning making me do nothing but draw this bloody sword and put it back in the scabbard. Standing, sitting, lying down. I think I can manage to get it back in the sheath without cutting myself.”
“I said listen, sheepherder,” the Warder growled. “There will come a time when you must achieve a goal at all costs. It may come in attack or in defense. And the only way will be to allow the sword to be sheathed in your own body.”
“That’s crazy,” Rand said. “Why would I ever—?”
The Warder cut him off. “You will know when it comes, sheepherder, when the price is worth the gain, and there is no other choice left to you. That is called Sheathing the Sword. Remember it.”
Then later on, Rand is contemplating his own death and Sheathing the Sword comes up in his thoughts:
“Ta’veren,” Loial began.
“I do not want to hear about that, either.” Rand started off again as fast as before. “All I want is to give the dagger to Mat, and the Horn to Ingtar.”
Then what? Go mad? Die? If I die before I go mad, at least I won’t hurt anybody else. But I don’t want to die, either. Lan can talk about Sheathing the Sword, but I’m a shepherd, not a Warder. “If I can just not touch it,” he muttered, “maybe I can. . . . Owyn almost made it.”
I gather from all of this that the intended purpose of Sheathing the Sword is to sacrifice one's self in order to take down your foe too, and possibly rescue / save others. This is also evident from the passages where Rand actually performs Sheathing the Sword:
“For the first time Rand realized that Ba’alzamon acted as if the heron-mark blade could harm him. Steel can’t hurt the Dark One. But Ba’alzamon watched the sword warily. Rand was one with the sword. He could feel every particle of it, tiny bits a thousand times too small to be seen with the eye. And he could feel the Power that suffused him running into the sword, as well, threading through the intricate matrices wrought by Aes Sedai during the War of Power.
It was another voice he heard then. Lan’s voice.
There will come a time when you want something more than you want life. Ingtar’s voice.
It is every man’s right to choose when to Sheathe the Sword. The picture formed of Egwene, collared, living her life as a damane. Threads of my life in danger. Egwene. If Hawkwing gets into Falme, he can save her. “Before he knew it, he had taken the first position of Heron Wading in the Rushes, balanced on one foot, sword raised high, open and defenseless.
Death is lighter than a feather, duty heavier than a mountain.
Ba’alzamon stared at him. “Why are you grinning like an idiot, fool? Do you not know I can destroy you utterly?”
Rand felt a calmness beyond that of the void. “I will never serve you, Father of Lies. In a thousand lives, I never have. I know that. I’m sure of it. Come. It is time to die.”
Ba’alzamon’s eyes widened; for an instant they were furnaces that put sweat on Rand’s face. The blackness behind Ba’alzamon boiled up around him, and his face hardened. “Then die, worm!” He struck with the staff, as with a spear.
Rand screamed as he felt it pierce his side, burning like a white-hot poker. The void trembled, but he held on with the last of his strength, and drove the heron-mark blade into Ba’alzamon’s heart. Ba’alzamon screamed, and the dark behind him screamed. The world exploded in fire.”
Anyway, I share all this to put Sheathing the Sword into its book context. Granted, Mirrors is a game, not the books, and Rand didn't have levels or hp to loose (so to speak). But Rand did risk his life, no Mistress of the Wheel to spin him right back out should he have died. The wound he did suffer from allowing Ba'alzamon to stab him plagued him from then on and nearly cost him is life on more than one subsequent occasion. That seems about like loosing 1-5 permanent hp to me
As I understand, using Sheathing the Sword in game pretty much makes you a super human for a short duration, almost guaranteeing you victory against any mob or smob (granted that you take them out in the time allotted). Anyway, that is just my two cents. I have never used the 'form' though I have heard about those who have and I thought I heard of one player who 'retired' his character through using it and RPed a permanent death in order to take out his enemy.
So whatever people have to say or whatever is decided on Sheathing the Sword, I just wanted to put it in context. Thank you, and pardon my ramblings.