They're still around. Certainly the US is no more loving and tolerant than it was in the 60's. Now they keep things a little more mainstream, unless they've isolated themselves from society all together.
Neo-hippies are peppered in everywhere now-a-days. While San Francisco is the site of the more dedicated hippie culture, you can find pockets of neo-hippies in most cities. They seem to be found more in cities then in small towns or rural areas - which is strange. But mainly urban areas.
