At http://www.fivedoves.com/letters/mar2014/billg318.htm, Bill G said Iraq cannot be the Babylon of Revelation because it is part of the Millennial Kingdom.  That does not preclude it.  HELL ITSELF will be part of the Millenial Promised Land.

Soddom and Gomorra are in the Promised Land, yet they were cursed as desolate locations forever.  It stands as a visible monument to those who might think of disobeying as to what happens to those who rebel against God.

And while Hell seems to be located in the "underworld", or under the earth, in the narrative descriptions of Scripture, we're told it will rise and be on top of the earth when the Kingdom is set up on earth.  Isa/Yesh 66 tells us...

"And they shall bring all your brethren out of all the nations for an offering unto the LORD, ... to My holy mountain Jerusalem...from one new moon to another, and from one sabbath to another, shall all flesh come to worship before Me...And they shall go forth, and look upon the carcasses of the men that have rebelled against Me; for their worm shall not die, neither shall their fire be quenched; and they shall be an abhorring unto all flesh." (Isa/Yesh 66:20...24)

Note what this is saying.  The people in the Millenial Kingdom will come to Jerusalem and see the Glory of the King......as well as the torment of those who rejected Him.  There is a dump heap south of Jerusalem called "Gey Hinnom", which is the Hebrew word for "Hell".  It is believed that hell will be located in that place when the Messiah arrives and people will see those suffering with their own physical eyes.  It will be a far worse place than Babylon, which, like Sodom and Gomorra (also in the Promised Land), are merely sentenced with eternal human desolation.

After the Messiah returns, hell either won't be under the earth anymore, or at least part of it will be above ground.  Why?

this reminds me of how I heard of a man who died and went to heaven and returned to his body later on.  He said that some time after he returned, God visited him again and told him, "You have seen heaven, I therefore must show you hell."  So he took the man to visit hell too.  Perhaps there is something about seeing heaven and not hell that could have a negative impact on someone , and require a need to balance out our senses with a visit to both if you have seen heaven.

Right now most people neither see heaven nor hell before they die.  But maybe those who see heaven on earth; the Messiah Himself, need to see both extremes, thus hell will be brought to the surface of the earth when heaven comes to earth.

So there is nothing about Babylon's location in the Promised Land that in any way prevents it from being the city declared desolate in Rev 17-18.  That did not get in the way of Sodom and Gomorra, and it won't get in the way of hell being brought to just south of Jerusalem's throne.  Parts of the Promised Land will be devoted to being a museum of sorts; a visible example of

"he condemned the cities of Sodom and Gomorrah by burning them to ashes, and made them an example of what is going to happen to the ungodly" (2 Peter 2:6)

Parts of the Holy Land will be dedicated to this type of a visible example.  There's nothing in Scripture to preclude this.  In fact, I cannot think of a location cursed with desolation that is not in the Holy Land.

Shalom, Joe