I don't remember if they used that specific term, but it sounds like reasoning they would use. It's sort of an all purpose thought stopper if a person sees issues or problems in the organization. No matter what happens that may cause them to doubt, they think "people are imperfect but it's still the organization that is the closest thing to the truth".
I remember a Watchtower article in the late nineties that basically said that even though mistakes may have been made by Jehovah's organization, they were the only ones to teach the truth about hell fire and the trinity, so they were still far better than false religion. I know now that about that time growth had slowed down quite a bit, perhaps they noticed an increase in people leaving over their failed date predictions or other issues. This line of reasoning actually worked on me for a short time and kept me stuck for a few years, not really in and not really out.