I think this is a good rewrite.
One suggestion (perhaps for future discussion): you might try rewriting the second sentence by moving sections around, for example: "While the popular tale was told with minor detail in Genesis, Milton fills in the gaps of God's character and logic and explores the perspective of the serpent himself as he tempts humanity into sin. This midrash has become so well known that it is often confused with scripture, with many details from Paradise Lost popularly attributed to the Bible, such as naming the serpent as Satan (or give another example here). Because of this, the Judeo-Christian community has often criticized the work."
One suggestion (perhaps for future discussion): you might try rewriting the second sentence by moving sections around, for example: "While the popular tale was told with minor detail in Genesis, Milton fills in the gaps of God's character and logic and explores the perspective of the serpent himself as he tempts humanity into sin. This midrash has become so well known that it is often confused with scripture, with many details from Paradise Lost popularly attributed to the Bible, such as naming the serpent as Satan (or give another example here). Because of this, the Judeo-Christian community has often criticized the work."