Think about it- why do most other elements NOT have multiple oxidation states? Because, each electron removed/added takes a certain amount of energy. At some point, the next electron will take a disproportionately larger amount of energy to remove, and unless the rewards are great enough, it won't take any more electrons. Transition elements, however, are more complicated. There is no straightforward, remove x amount of electrons, and then the next electron takes far more energy.
There are multiple paths for a transition metal to reach stability. It can remove all (n-1)d electrons, it can remove all (n-1)d and all ns electrons, and most also have the complication of high and low spin complexes, which are determined solely by what compound the metal is bonded to. Different states are stable in a high spin complex than a low, and vice versa. Each now configuration that leads to relative stability is a new possible oxidation number.
The same can also be said for rare earth metals, yes. However, most compounds involving use of the f orbitals decay rapidly, so this branch of chemistry is not yet well understood.