Nope. I know people who would have had to drive two or three hours to a USPS location that could do passport photos. And then, it's only done for a couple of hours a day, one or two days a week.
Instead, they went to the photo department of the pharmacy 15 minutes away and got it done.
USPS taking the role on primarily would likely entail expansion of the services to smaller post offices, like the one in my wife's old town of 400 people in the middle of nowhere.
My little suburb of 20k people has a USPS employee who handles them. Should be entirely possible even in rural areas.