Miltown has generally been replaced by good old Valium, Soma and other safer, more effective drugs.
The pills are mentioned frequently in the book "Mott The Hoople" which is where the band got its name from (The British band went on to give mega-star band Queen their start).
Mott, the main character, is addicted to Miltown and eats them constantly even while driving.
And yes, the drug was named after the town in NJ.
Damn, I'm gonna go to Miltown to get me some Miltown!
...And I'll be blasting Mott The Hoople while taking the pills.
Sheesh, good thing they didn't name a pill 'Allentown' or 'Levittown'. Those are two places that REALLY suck, and I'd imagine the drugs named for them would as well!
Actually they should just re-name Allentown "Crack Town" I think that's accurate and has a nice ring to it...