thanks to Donna for the research at http://www.fivedoves.com/letters/march2013/donnad327-1.htm . I do believe it is possible that Rome is Babylon, and certainly one of the leading candidates for the city of Rev 17.
Some people say that the name "Babylon" is being used in a "symbolic" sense. We really don't have to go that far. It is quite possible it is being used in a descriptive sense. The word "Babylon" means "confusion", and by calling that city "Babylon", the Scriptures could simply be calling it the city of confusion, with little to no intended link to the ancient city of Babylon.
It is also possible that the ancient city of Babylon is the city of Rev 17. In order for that to happen though, since Daniel points towards Europe as the place of origin by saying the people of the false messiah would destroy the temple, I would suspect the false messiah would likely still rise out of Europe and then move his capital there.
But it also preceedes the word "Babylon" with the word "mystery". So it may simply be telling us that this city will use confusion to hide truth. Daniel tells us that truth will be thrown to the ground when the false messiah rises. So that is no surprise.
Shalom, Joe