Soundgarden was a place, I think.
Is Alphaville a real place? 
Fairport Convention
Nirvana (if you can think of it as a “place”)
New York Dolls
Kinky Friedman and the Texas Jewboys
Nashville Pussy
Just off the top of my head…
Ah, a band named after two places. 
The Oak Ridge Boys
(the only one I could think of that hadn’t been mentioned yet).
Euclid Beach Band (Euclid Beach, on the shore of Lake Erie, was a Cleveland amusement park that I visited several times before it closed when I was about 11 years old)
McGuffey Lane (named for a street in Columbus, OH)
Lessee…
Georgia Satellites
Kingston Trio
The Fifth Dimension (heh)
Paris Combo (quite good, actually…not nearly as pretentious-sounding as their name would imply)
There is a band from the UK called “Texas”. I only know of them due to a mention in the BBC series The Office.
Death In Vegas
Sorry About Dresden
Mannheim Steamroller
They’re actually named after a steamroller.
Asia.
They’re actually named after a manufacturer of steamrollers.
Gun Hill Road (Named after a road in the Bronx)
Hatfield and the North (Named after a British road sign; “Hatfield” is a town in the UK)
Japan
David Tibet
The Future Sound of London
The Miami Sound Machine
The Snake River Conspiracy
Scud Mountain Boys
The Atlanta Rhythm Section
Herb Alpert & the Tijuana Brass
The Memphis Horns
Earth, Wind & Fire (do planets and other heavenly bodies count?)
George Thorogood & The Delaware Destroyers
The Texas Tornados
Sex Pistols (named after a store named “Sex” in london)(leather & fetish wear,I think)
California Guitar Trio
Bob Wills & His Texas Playboys
Big Guitars Fron Texas
Manitoba
Warsaw
Mission of Burma
Huntington Cads (Huntington Beach)
Guadalcanal Diary
Spandau Ballet
China Crisis
When In Rome
Danzig
Londonbeat
New Amsterdam
Oneida
Trafalgar
The Detroit Cobras
Orleans
Long Beach Dub Allstars
Ohio Express
The Ohio Players
The Amboy Dukes
Brownsville Station
UK - somewhat popular progressive rock band
Missouri - one-hit wonder (“Movin’ On”) from the 1970s
Las Cruces - Heavy metal band named after the New Mexico city
Eddie from Ohio - acoustic rock/folk, ogten ehard on AAA format stations
England Dan and John Ford Coley
John Denver
Mississippi John Hurt
Jimmy Eat World
Alan Parsons Project - isn’t that off the Dan Ryan Expressway on Chicago’s South Side?
Antietam
Big Country
Big In Japan (a short-lived band featuring future Frankie Goes To Hollywood singer Holly Johnson, future Siouxsie and the Banshees drummer Budgie, future Lightning Seeds dude Ian Broudie and future JAMS/the KLF dude Bill Drummond)
Del Fuegos
MC5 (“Motor City 5”)
Frankie Goes To Hollywood
Mighty Mighty Bosstones (from Boston)
Southside Johnny and the Asbury Jukes
McGuffey Lane
The Allstonians
Kansas
America
**The Sound of Philadelphia{/b] who did MFSB (Mother Father Sister Brother)
Marcy Playground
(A lot of my friends (and I think Brainiac4) lived in that neighborhood, one of the younger brothers had this to say about the band name:
“I heard an interview with (whateverhisnameis) and he was talking about naming the band and how they used to get chased and tormented by the older kids on the playground. I hope he wasn’t talking about me.”
Dixie Chicks