Something I think ought to be mentioned that I didn't see anybody mention it yet:
Babylon in the Bible is always referred to, as a place of "Spiritual Fornication", or more simply, "idolatry". The act of replacing God in your life with something else, be it a false idol, or material wealth, or some hobby that you greatly enjoy doing. God doesn't want to remove all enjoyment and fun out of our lives, however, He wants to be the center of our lives. We can have entertainment, but they are to never take priority over Him in any way, shape, form, or manner.
Well, back to the Babylonians, ever heard of the Mazzaroth? The Jewish peoples had some lore concerning the constellations of the stars, and most of it has been lost in time, but the little that does remain, seems to tell a story about Christ. Well, that's interesting, because the Mazzaroth pre-dates Christ by a longshot.
It has been theorized that the Babylonians copied the Mazzaroth and twisted it into what we call the Zodiac and then turned into a tool of demons (Astrology, Divination, etc).
They weren't building a physical tower to get to the sky, they were actually building a planetarium and setting up a false Mazzaroth and inventing strange idols and false gods and spreading these false teachings amongst all of the peoples. If God hadn't done what He did, this poison would have spread throughout all of the people and He would have been forced to wipe them out again. But yet He couldn't, because he promised Noah that he would never again destroy the world with water, and He would obviously know that the other destruction (the one by Fire in prophecy) wasn't supposed to happen yet.
He knew that He had to stop this, and stop it fast, so He confounded their languages, and that stopped it in their tracks before it spread too far. Babylon remained as a city, but a lot of the peoples scattered when they could no longer understand each other, and thus slowed down the spreading of lies and false worship.
Everytime Babylon is mentioned in the Bible (especially in Revelation and some other places, like the prophets) after it was conquered and destroyed/turned into a new kingdom, it is talking about spiritual Babylon, which is the origin and epicenter of false worship and spiritual fornication. It is used as an allegory for man's tendency to work to find God, rather than allowing God to reveal Himself like He wants to do, and for man's tendency to try to replace God with anything else that strikes their fancy.
Look around you at the industrialized and technological world today. Churches are slowly losing members, less and less people care about God and Christ. There are people professing Him that only go to Church once a week, or even twice a year (Chreasters, I think they're called, a portmanteau of Christmas and Easter). They've replaced God with media, entertainment, and mammon (the endless pursuit of money and/or material wealth). And that's to say nothing about the false religions, or the growing atheism.
There's a reason why in Revelation, Christians are told to "Come out of Babylon". People scratch their heads going "Is Babylon going to be rebuilt?" The answer is most likely, that it refers to a Spiritual Babylon. Revelation is actually asking us to come out of our lust for material wealth, media, and entertainment, to put these things aside and come to God. I don't believe that there should be absolutely no entertainment at all, but yet... when you got people who play games or watch TV for 4, 6, 8+ hours a day but yet can't spend not even one hour with God, either the Bible, worship music, praying, etc, well... that's what He means by "Come out of Babylon".