I believe that the writer of Revelation intended Babylon the Great to refer to Jerusalem and the religious leaders of Judaism. This makes the most sense when Revelation is considered in the context of the rest of the NT. Consider the commonalities between the two:
1. Both the Jewish religious system and Babylon the great are said to be full of the blood of prophets, including the blood of Jesus' followers:
(Matthew 23:29-36) . . .“Woe to YOU, scribes and Pharisees, hypocrites! because YOU build the graves of the prophets and decorate the memorial tombs of the righteous ones, . . .31 Therefore YOU are bearing witness against yourselves that YOU are sons of those who murdered the prophets. . . .34 For this reason, here I am sending forth to YOU prophets and wise men and public instructors. Some of them YOU will kill and impale, and some of them YOU will scourge in YOUR synagogues and persecute from city to city; 35 that there may come upon YOU all the righteous blood spilled on earth, from the blood of righteous Abel to the blood of Zech·a·riʹah son of Bar·a·chiʹah, whom YOU murdered between the sanctuary and the altar. 36 Truly I say to YOU, All these things will come upon this generation.
(Revelation 17:6) . . .And I saw that the woman was drunk with the blood of the holy ones and with the blood of the witnesses of Jesus. . .
(Revelation 18:24) . . .Yes, in her was found the blood of prophets and of holy ones and of all those who have been slaughtered on the earth.”
The book of Acts portrays the Jews in various places as being instrumental in stirring up persecution against Jesus' followers.
2. Judaism was international in scope, having both ethnic Jewish and foreign proselyte followers in many countries who speak many languages:
(Acts 2:5-11) . . .As it was, there were dwelling in Jerusalem Jews, reverent men, from every nation of those under heaven. 6 So, when this sound occurred, the multitude came together and were bewildered, because each one heard them speaking in his own language. 7 Indeed, they were astonished and began to wonder and say: “See here, all these who are speaking are Gal·i·leʹans, are they not? 8 And yet how is it we are hearing, each one of us, his own language in which we were born? 9 Parʹthi·ans and Medes and Eʹlam·ites, and the inhabitants of Mes·o·po·taʹmi·a, and Ju·deʹa and Cap·pa·doʹci·a, Ponʹtus and the [district of] Asia, 10 and Phrygʹi·a and Pam·phylʹi·a, Egypt and the parts of Libʹy·a, which is toward Cy·reʹne, and sojourners from Rome, both Jews and proselytes, 11 Creʹtans and Arabians, we hear them speaking in our tongues about the magnificent things of God.”
(Revelation 17:15) . . .And he says to me: “The waters that you saw, where the harlot is sitting, mean peoples and crowds and nations and tongues. . .
3. Jesus' instructions to his followers that they flee Jerusalem when they see it surrounded, matches the idea expressed at Revelation 18:4:
(Revelation 18:4) . . .And I heard another voice out of heaven say: “
Get out of her, my people, if YOU do not want to share with her in her sins, and if YOU do not want to receive part of her plagues.
The only scripture I see in Revelation that seems to contradict this view is Revelation 17:18: "And the woman whom you saw means the great city that has a kingdom over the kings of the earth. . ."
Jerusalem did not have such great political clout back in the first century. It's possible that Revelation is here referring, not so much to political clout, but just the fact that Judaism was very influential, having adherents throughout the ancient world who would make annual pilgrimages to Jerusalem. Jerusalem was also the figurative palace of the God of the universe, whose kingdom is above that of all the kings of the earth. The religion was also greatly respected by non-members, seen as a source of ancient noble wisdom. Of course this all changed later when the Jews started being accused and expelled from Rome. But the writer is likely talking about the great influence of Judaism early in the 1st century.
The writer of Revelation is basically comparing and contrasting "apostate" Judaism with true Christianity. The NT refers to christians as being the chaste bride of christ, so the writer styles Judaism as the antithesis of that - a promiscuous harlot. The book of Ezekiel also styles Jerusalem/the Jews as a promiscuous harlot. It's really not hard to see that the writer was referring to Jerusalem/Judaism.
If you see the book of Revelation as a purely human work by a man living in the late first century or early second century and trying to guess at the future with the limited knowledge of his own time, then its easier to see how it fits with other bible texts. But if you see it as being a truly prophetic book inspired by God and accurately referring to future events to take place in our time, then it starts to make a lot less sense.