We are told of the new Jerusalem in Revelation 21, which is after the millennial rule of the Lord and after the second resurrection when the goats are judged to the lake of fire. So your premise is a bit off.
As to your applying Mystery Babylon to Jerusalem, based on this verse in Revelation 18 you are way off base:
Revelation 18:23
..for your merchants were the great men of the earth, because all the nations were deceived by your sorcery. NAS
The great men of the earth do not live in Jerusalem they live in New York, London, Rome, and other major cities outside of Israel.
Also you have either ignored these and other prophecies concerning Jerusalem or you have allowed your personal prejudice to blind you:
Zechariah 14:9-11
9 And the LORD will be king over all the earth; in that day the LORD will be the only one, and His name the only one. 10 All the land will be changed into a plain from Geba to Rimmon south of Jerusalem; but Jerusalem will rise and remain on its site from Benjamin's Gate as far as the place of the First Gate to the Corner Gate, and from the Tower of Hananel to the king's wine presses. 11 And people will live in it, and there will be no more curse, for Jerusalem will dwell in security.
NAS
Malachi 3:4-6
4 "Then the offering of Judah and Jerusalem will be pleasing to the LORD, as in the days of old and as in former years. 5 "Then I will draw near to you for judgment; and I will be a swift witness against the sorcerers and against the adulterers and against those who swear falsely, and against those who oppress the wage earner in his wages, the widow and the orphan, and those who turn aside the alien, and do not fear Me," says the LORD of hosts. 6 "For I, the LORD, do not change; therefore you, O sons of Jacob, are not consumed. NAS
Revelation 11:8 is about the death of the 2 witnesses that will prophecy in Jerusalem and is not a judgement against that city.
I suggest you get into the OT and study how God will redeem His chosen people instead of assuming God has abandoned His chosen people. You don't even have to research this in the OT, just read Romans 11.