At this point, I believe Babylon is a SYSTEM made up of religious, social, and economic characteristics. I have read a study that strives to prove from Scripture that Babylon, the great harlot, is a combination of the International banker/money lenders and Jerusalem. "...Not the literal city, but the people who represent the rulers of the city: the Pharisees, religious leaders, moneychangers, and modern day equivalents who rule the kings of the earth." If anyone would like to read more, the link is http://bibleprophesy.org/rev1718.htm
It makes the most sense of what Scripture says in connection with current events that I have seen. I will say I have found some verses pulled out of context, but spitting out the bones, it still makes sense.
