…are always crappy:
Alabama
America
Boston
Chicago
Kansas
Nazareth
Styx (if you count mythical places)
Did I miss any?
Europe
Asia
Toronto (a pretty good Canadian bar band)
forgot Chilliwack - another Canadian bar band named after the city in British Columbia
Maybe not your style of music, but it’s hard to argue that those bands are “crappy.” Missouri - they were crappy.
Also, I’m pretty sure you’re missing a few hundred. Without really thinking there’s Manhattan Transfer, Portishead, Little River Band, Scrantonicity 
Despite the fact that I disagree entirely with your premise…
U.K.
Chilliwack (named after a city in Canada)
(Edit: ninjaed on Chilliwack because I walked away from my desk before hitting “send”)
It’s “England” Dan.
L.A. Guns
New York Dolls
The Mission U.K.
Ah right. I was thinking of English Bob from Unforgiven: “That right mister? You English Bob?”
I don’t agree with the premise either.
Atlanta Rhythm Section
New York Flyers
Caribou, formerly known as Manitoba
Miami Sound Machine
If we’re allowing local bands, The Mar Dels from Del Mar, CA were a pretty popular party band. Actually, it looks like they’re still around.
Oh, there’s also Berlin, semi-famous for their contribution to the Top Gun soundtrack, although some of their other stuff was better.
Gun Hill Road, a decent one-hit wonder band.
Ozark Mountain Daredevils
Hatfield and the North (named after a road sign, though there is at Hatfield in the UK). Well received critically.
Bruce Springsteen and the E-Street Band
Julie London 
Fountains of Wayne (named after a lawn ornament store in Wayne, NJ)
The E Street Band
New York Rock and Roll Ensemble were pretty good.
they weren’t named after the city. they were named after a transit company, Chicago Transit Authority, and forced to change their name, ending up with Chicago.
so maybe, maybe not.
I could not identify a single song by them, but I always thought Black Oak Arkansas was a cool name.
(And I also think several of these place name bands are pretty good.)
Berlin (Take My Breath Away)
Bay City Rollers