It's not the tag itself that is abandoned, but the proposal system is abandoned by many people.
There are [11 001 highway=milestone][1] and [1 043 railway=milestone][2] in the database. If you want more of them, then just tag them. If you are planning a massive import however then please see the [import guidelines][3] and other questions on this helpsite about imports.
EDIT:
Over a year later and now there are a lot more railway=milestone in the database. This tag is now visible on the [OpenRailwayMap][4].
[1]: http://taginfo.openstreetmap.org/tags/?key=highway&value=milestone
[2]: http://taginfo.openstreetmap.org/tags/?key=railway&value=milestone
[3]: http://wiki.openstreetmap.org/wiki/Import_guidelineshttp://wiki.openstreetmap.org/wiki/Import_guidelines
[4]: http://www.openrailwaymap.org