I have heard some bands around here(Seattle) that have pretty good names.
Halo Benders
The Microphones
Tracy and the Plastics
Dub Narcotic
enemymine
Black Anger
Carrisa’s Wierd
Cherry Poppin Daddies, come to mind.
As do Alien Ant Farm, Badly Drawn Boy, Flogging Molly, My Life With the Thrill Kill Cult and Gay Dad.
Here are ones I’ve created recently in stories:
Beat Puppy
Whores-next-door(inspired by the last neighbors I had in my dorm)
Anorexic Love
Seven Ate Nine
for only $799.99 I’m willing to sell you the rights to one of them 
I wish. I was surprised that a web search a few months ago didn’t produce any evidence of a real band with the last name.
Nile Banks and the Phabulous Pharaohs
Here’s a few local bands here in south-central Indiana:
The Black Market Pop-Tarts
Operation Cliff Claven
The Porno Pimp Dads
Stone Carnival
X-Ray Roger Jimmy
You
Mojo Hand
Beeblebrox
Rumor Has It
James Bond Goes Surfing
The Not Too Bad Bluegrass Band
Sex Clark Five
archibald archibald archibald
Drum & Machine Corpse (yes, I spelled it right)
Pro Midgit Mafia
And my personal favourite:
The Japonize Elephants from Porlock
My favorite real band name:
Me First & The Gimme Gimmes.
They’re great! They play punk/thrash versions of things like ‘Rainbow Connection’ and ‘One Tin Soldier’.
There was a local band in Denver in the 80’s called “The Four Nikators.” I always thought that was brilliant.
here in the “Live Music Capitol of the World” we have (and have had)some cool ones:
Retarded Elf (makes me smile every time)
Rotel and the Hot Tomatoes
Schrodinger’s Cats
the Scabs
the Ugly Americans
Pfelcraux
Dave Barry in an old column, once wrote that “Groping For Elmo” would be a great band name. I agree.
Here’s a couple funny names I’ve heard…
Jesus Chrysler
Jif and the Choosey Mothers
…and one I think would be a good name (especially if Perry Farrell wanted to start a new band)
The Feral Parrots
Extreme Mongrels
The Dimpled Chad All-Stars
Glass Erection with their hit song, ‘Can you see us coming?’
Tdchnicolor Ralph and the Handiwipes
The Plaid Power Rangers
The Naughty Napsters
The Teeming Millions
Naval Jello
Canada Dry Heaves
Feral Beagles
Does This Smell Bad?
The Death Mints
Poindexter Cathedral
I’ve found numerous possibilities on Chinese restaraunt menus. My personal favorite: Slippery Chicken.