I can speak to this. I was born and raised in Middlesex Borough, and still have some friends that live there and are raising their families there.
It's an ok town if your budget is less than $400k. I hear it has gone downhill in the past few decades and is not the same as it was when I was growing up in the 80's-90's. The population then was mostly working Italians with a sprinkling of other people. Now I hear it is half hispanic and half everyone else, not that there is anything wrong with that but that may not be for everyone. They are going through a demographic shift as we speak. Also, there weren't many professionals there then and there are probably less now. Even my friends parents back then who had money had family businesses, ran a restaurant, or did some kind of trade. None of my friends parents were professionals like attorneys, CPA's, architects, professors... people who value education, and that shows in the values their kids pick up... who will be hanging out with your kids. Not as much value is placed on education. There are also a lot of multi-generational "townies" that live in Middlesex, that never left.
The center of town is where the Texas Weiner is on Rt 28, and that strip mall across the street that used to be anchored with an A&P and Sheppards years ago, with mom and pop shops in between. Now the anchors there are a dollar-store and a hispanic food market... and that tells me a lot.
The best part of town is the Hazelwood school area. I grew up on Beechwood Ave, probably the nicest street in town and it's still nice around there. But when your kids meet up with the other half of town in Mauger Middle School it will be a bit of a shock.. it was for me even back then.
I wouldn't move back there now, and the people I know that did only did so because of budget issues. I mean, it's not a bad town but you can do better in the area for a little more money. Personally, I would take less of a house and property to live in Bridgewater or Green Brook which is right next door.
Hope that helps.
I was born and raised in Middlesex. Moved away a few years ago. Spot on, you nailed it. Bravo.