Sort of, but not really. Eth started off as a variant of 'd' in Irish scribal writing. It came to be used in English and other Germanic languages to represent dental fricatives, along with thorn.
English is actually more conservative than the other western Germanic languages when it comes to dental fricatives. English preserves the original proto-Germanic dental fricatives, whereas in the others, they generally turn into stops, which is why you'll see 'th' in English corresponding to 't' and 'd' in Dutch from time to time.
No because I guess it's all different in the Netherlands. In Germany ein Dorf is not the same as a town... It's more like a village. They call them villages. IDK why. A town in the USA is like een stad / eine Stadt -- I really don't know why, but when I talk to my German friend there's always confusion about meaning. She says village in English instead of town, and she calls my town a city. I'd call her village a town if there were an accurate translation for town.
It's just different so get in the habit of thinking of it as a village instead of a town.
In dutch, "een stad" is only a "stad" if in the past it got city-rights. Rights to tax their citizens, to build walls, to hold markets etc. There are very little towns with less than 1000 inhabitants, like Sloten, where newer places like Almere with over a 200.000 inhabitants neaver got city rights and are technically still a "dorp" = village. In practise the definitions in dutch are not so strict. We use dorp (village), plaats (place), stad (city), gemeente (counsel), gehucht (hamlet), quite flexible.
Well in German, Berlin ist eine Großstadt aber auch bloß eine Stadt... I'd say Stadt is a city and maybe a "town" in some cases... But really towns don't exist there and they call them villages. Dorp/Dorf translates to village, even though in America we'd call it a town.
Just forget about towns existing in the Netherlands/Germany. Everything is either a village or a city. XD