I have never heard of this rule, but I feel very comfortable dismissing it outright and even suggesting it be dangerous. Here is why: One glance at this rule tells even a math dummy like myself that it is a very simple linear equation (120 minus depth = NDL). Knowing that physiological processes such as gas absorption in the body are almost never linear, but more complicated than that, makes me suspicious of using a linear rule to determine a non-linear relationship.
My hunch is further strengthened by looking at the table: For example, my NDL at 30 feet is 200 minutes. If I double the depth (to 60 feet), the NDL is only a quarter of the NDL at 30 feet, namely 50 minutes. If I double the depth again to 120 feet, the NDL is 10 minutes, even LESS than a quarter of the time at 60 feet. This tells me the relationship between depth and NDL is non-linear and that the "120 rule" HAS to be bogus. Not because I'm arrogant, but based on this very straightforward consideration.
Lastly, the fact that I have never even heard of this in any of my many, many diving courses and cert classes makes me think there must be a reason.
To me asking the question, "Does anyone still use the 120 rule" is perhaps a little bit like asking, "Is anyone still driving a car without seat belts?"
Sure, maybe, but why would anyone do that given that seat belts (read: dive tables and computers) are readily available?